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Evolution, rather than revolution

22/5/2018

 
​Sometimes, what appears to be a massive change is actually more evolutionary than revolutionary.

The new Government came in last year with a hiss and a roar, banning foreign buyers, promising migration cuts, reversing tax cuts and arguing it had discovered massive infrastructure deficits that needed fixing. It announced big increases in the minimum wage and a families package that boosted low incomes substantially and pledged to reverse nine years of employment law changes.

​It also put its own choice in as Reserve Bank Governor and changed the foundation of monetary policy to a dual mandate that took employment into account as well as inflation. These all sound like massive changes, but now we have the first round of reporting milestones on both monetary and fiscal policy to assess just how much has changed. ​​The Reserve Bank published its first Monetary Policy Statement under new Governor Adrian Orr on May 10 and Finance Minister Grant Robertson unveiled his first full Budget on May 17. 
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