Navigating the hazards of inequalities

The RBNZ’s relationship to government has shifted in the past year
Rachael King

Widening wealth and income inequalities have become a communications hazard for central banks, as a result of mistiming between their and governments’ actions to support economies struggling with the Covid-19 pandemic.

Initially, this seemed to be an issue of the perennial lack of co-ordination between independent monetary and political fiscal authorities, intervening in different spaces at different paces, but affecting economies at the same time. Central banks were boosting economic activity

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