Bollard defends monetary policy framework

Alan Bollard, the governor of the Reserve Bank of New Zealand said yesterday that if the central bank were to aim for exchange rate stability the price to be paid would be big swings in interest rates.

Speaking before parliament's finance and expenditure select committee, which is holding an enquiry into the monetary policy framework, Bollard defended the framework and said that over the past ten years, inflation had averaged about 2.5% and economic growth around 3%, while unemployment had hal