Well, it is worried as the currency is overvalued!
In this speech RBNZ chief Graeme Wheeler discusses why NZ currency is so strong. He first says that there are some reasons for currency to appreciate:
Archive for September 25th, 2014
Why NZ is worried about its overvalued currency?
September 25, 2014When economic policy becomes a crime and policymakers criminals…
September 25, 2014Prof. Michael Boskin reflects on the recent reaction by Venezuelan polity on Prof Ricardo Hausmann. Prof Ricardo Hausmann questioning economic policy in Venezuela in this article Should Venezuela Default?” Hausmann is a former minister of Venezuela and currently a Prof at Kennedy School.
Prof Boskin says this is getting bizarre:
Is Economics a Science? Dogmatic Economics Vs. Reflective Economics..
September 25, 2014Fixing the economists Blog has this interesting post on the topic.
This is one of the most important philosophical questions regarding economics- is it a science? Econs surely believe and have tried to model their ideas as Science like with laws and theories etc. This is met with criticism as these laws are not universally applicable and are inconsistent.
But then what is science at the first place? There is huge disagreement on the same. The blog defines science and then sees whether economics fits as a science:
Lessons from Scotland referendum: We need more modest/smaller forms of government..
September 25, 2014Though the voting supported Scotland remaining in UK, the stress over basic governance is increasing in most parts of the world. People are growing frustrated with their governments to provide even basic services.
Richard W. Rahn of Cato says we need to reorganise our states to smaller sized ones.
Pradhan Mantri’s Jan-Dhan Yojana – a supply side approach to financial inclusion
September 25, 2014There are two aspects to financial inclusion – demand driven and supply driven. In demand driven the focus is on improving things like financial literacy etc to highlight importance of financial inclusion. Supply side looks at improving things at banks side like pushing opening of bank accounts, easing dealing with banks etc. Econs prescribe policy solutions for both sides but in reality both are needed. If one just works on demand and there is no response from supply or if things improve on supply front but not on demand, fin inclusion is not meaningful.
This article by Claire Célérier and Adrien Matray discusses how US eased its supply side issues.
Indian Govt’s recent drive to push financial inclusion – Pradhan Mantri’s Jan-Dhan Yojana – is another supply driven approach. Camps are being set up to push people into opening their bank accounts. The idea would be to then use bank accounts to provide transfers etc directly to the needy. Given recent numbers, what the govt has managed to do in just a few days takes years if done normally. Govt’s resolve to do anything is easily the biggest way to achieve any task.
K@W discusses this new initiative and says demand side issues are as important. It also discusses other issues with the program.
We have had many state led programs to drive financial inclusion. Will have to wait for the results…
Mostly Economics 
