The anti-business monetary policy means that the NZ exchange rate compared to the Australian dollar has risen by 23% since 1991. This makes our products less competitive on the Australian market. The monetary policies are to raise interest rates in order to raise the exchange rate ... which means we now have one of the highest real interest rates in the world, nearly 9% real. This brings in foreign capital to speculate on the NZ market ... pushing up the exchange rate, and making a very unfriendly environment for the manufacturers, agricultural and horticultural exporters in this country."
What a difference ten years can make.
The above quote is from Jim Anderton, having a go at the National Government's economic policies.
High interest rates destroying local industries? Foreign capital floodiing into the country to take advantage of the highest real interest rates in the world? It all sounds eerily similar to what is happening today - the difference being that the abrasive Jim is defending the very same kind of economic policies he was attacking in 1996...
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