NZ's Bollard wary of calls for cyclical policy

In the wake of the credit crunch, central bankers around the globe have mooted the idea of implementing reforms to temper the peaks and troughs of credit cycles. The Bank for International Settlements confirmed its support on Monday in its Annual Report.

But for Alan Bollard, the governor of the Reserve Bank of New Zealand, the idea has significant drawbacks.

The Reserve Bank has investigated the issue separately, which has led Bollard to conclude that he would only support controlling capital o