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Bryce Wilkinson & Graham Wheeler: How central bank mistakes after 2019 led to inflation

Press Release: How central bank mistakes after 2019 led to inflation

  • Central banks globally have made serious monetary policy mistakes

  • To restore credibility, they must acknowledge and correct those mistakes

A research note released today by The New Zealand Initiative mainly attributes the outbreak of inflation in many economies to central bank mistakes. Co-authored by Graeme Wheeler, former Governor of the Reserve Bank of New Zealand, and Bryce Wilkinson, Senior Research Fellow at The New Zealand Initiative, the paper argues that central banks overall:

  • were too confident about their monetary policy framework;

  • were too confident about their models;

  • were too confident they could control output and employment;

  • lost their focus on price stability and took on too many mandates;

  • faced conflicts in some cases with conflicting ‘dual mandate’ objectives; and

  • were distracted by extraneous political objectives, such as climate change.

The foreword by Dr William White, former deputy Governor of the Bank of Canada and a former Economic Adviser and Division Head at the Bank for International Settlements, concurs: "Central bankers have fundamentally misread the nature of the system they are trying to control”, Dr White observes. “The economic and financial consequences of central bank mistakes will be serious and felt world-wide,” said Dr Bryce Wilkinson. “The poorest and most vulnerable will be hit hardest by monetary policy errors.” Graeme Wheeler concludes. “To begin restoring their damaged credibility, central banks must assess and acknowledge why their models and judgements were so inaccurate and inform the public on what steps they are taking to rebuild public confidence”.

Read our research note: How central bank mistakes after 2019 led to inflation here You can listen to the Initiative's podcast about the report here (or read the transcript).

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14 Comments


A good clean out is needed, the problem been we are the ones getting cleaned out on all fronts, while the rich elite keep counting their, sorry OUR money.

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Ron
Ron
Jul 27, 2022

So very true. In their dreams these financial whiz-kids imagine they can defy basic common sense, reality, logic, reason and control the market. The more they try, the worse it gets - and the higher they reward themselves - while we, the suckers, pay with our devalued earnings and savings.

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ron
ron
Jul 26, 2022

Apart from the content itself of this report, the fact that such a learned, truth exposing report on global economics has been written by two Kiwis, restores just a little bit of faith that not everybody here has gone woke, Marxist, climate alarmist bonkers. That this little country can still originate some of the world's best thinkers and doers.

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adrian.1
adrian.1
Jul 25, 2022

And again who pays? Highly paid jobs and no accountability. Time for the guillotine

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Printing money/quantitive easing, call it what you like, didn't work for Germany in the 1930s and doesn't work now or ever.

The same for goes for Marxism and without doubt the newest dumbest-ever worldwide cult called climate alarmism.

Then you have the hilariously absurd optic of Janet Yellen feigning surprise at USA's 9.1% inflation after Biden's administration tipped 3Trillion into the economy. Idiots.

The idea of labour's own fatty Robinson somehow being qualified to be finance minister is as preposterous as flying pigs. He couldn't run a lemonade stand.

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