The Libertarianz Party backed Phil Goff’s calls for the Reserve Bank to abandon its anti-inflation policies. Party leader Richard McGrath said it was futile for the Reserve Bank to manipulate interest rates when the government keeps printing fiat money.
“I question whether the Reserve Bank is still relevant. Why not close it down, and allow supply and demand by private consumers to determine interest rates, the exchange rate and other economic variables?” he asked.
“Inflation of the money and credit supply destroys the value of savings,” he added. “And yet we hear politicians agonising about New Zealand’s supposedly poor savings rate and overinvestment in real estate. Why not shut down the Reserve Bank and allow private banks to print their own currency, backed by real assets such as gold? This will help protect bank deposits from debasement by politicians.”
Dr McGrath said the Libertarianz Party supports the concept of free markets for all goods including money.
“The only role for government should be in protecting New Zealanders against coercion, including fraud and embezzlement. Unfortunately, by issuing paper currency not matched to precious metals or other stable assets, thus causing inflation, the state is removing any incentive for New Zealanders to save for their futures.”
For more information, please contact:
Dr Richard McGrath
Phone: 027 322 2907
Email: [email protected]
Libertarianz: More Freedom, Less Government