Central Bank Governors Gone Wild: Don Brash Was Never Like This, Part III

The New Zealand economy contracted by 0.1% in Q4 and averaged 0% growth in the second half of 2005. The data suggest that NZ was heading into recession before 2006 even began. Sadly, these are the sort of macro outcomes to be expected when central bank governors give too much weight to concerns about external imbalances and house prices.