Interview with Michael Reddell

Discusses joining the Reserve Bank of New Zealand in 1983 - mentions completing his honours degree in economics at Victoria University of Wellington, which was sponsored by the Bank. Talks about his entry into the Banking Section of the Economics Department - elaborates on the Department's duties. Discusses the culture of the Bank in 1983 - mentions some of the Bank's leading personalities, Roderick Deane, Peter Nicholl, David Archer, and Dick Wilks. Also mentions Bruce White, Andrew Tweedie, and Robert Muldoon. Describes his main duties during his early years with the Bank - mentions setting the Reserve Asset Ratio (RAR) once a month. Talks about being involved in the Bank's thinking on various topics, including the optimal monetary policy, the fully funding approach, the size of government security tenders, and liquidity management arrangements. Discusses the background to full funding - discusses the relationship between primary liquidity, the monetary aggregates and inflation. Details the currency crisis of mid-1984. Explains the move to a focus on settlement cash balances in 1985. Discusses the dispute with Treasury over the government accounts - mentions John Zoharb, Pat Duignan, Paul Atkinson, and Ian Harrison. Discusses the short run and long run consequences that would have followed the withdrawl of the government accounts from the Bank.

Discusses his secondment as Economic Advisor to the Bank of Papua New Guinea from 1985 to 1987 - talks about his interest in Papua New Guinea and the work he did during his time there. Discusses his return to New Zealand and becoming Manager of Monetary Policy. Talks about his involvement in inflation targeting - details a briefing meeting between Roger Douglas and officials from Treasury and the Reserve Bank on the 31st of March, 1988 - mentions Lindsay Knight, Arthur Grimes, Howard Fancy, and Grant Spencer.

Talks about the development of economic models and forecasting performace - mentions the first monetary policy statement for which he was the author. Talks about being appointed Manager of Forecasting in late 1991 - discusses his role. Details how the Bank was able to make forecasts after the econometric model proved to be unreliable. Describes the introduction of the Forecasting and Policy System (FPS) and the effect it had on forecasting. Talks about the retirement of Spencer Russell and the appointment of Donald Brash as Governor - discusses some of the initial changes within the Bank. Describes the review and restructuring of the Bank in the early 1990s. Discusses his feelings about the reforms of this time. Mentions his involvement in the staff union. Comments on the resignation of Lindsay Knight and the influence he had on the Bank. Discusses his own work in Zambia as part of an IMF-sponsored position between 1993 and 1995 - details his work as Chief Economic Advisor to the central bank Governor. Talks about his return to New Zealand - comments on the changing mindset of the Reserve Bank at the time.

Discusses his appointment as the Manager of Financial Markets Operations and details what this role entailed. Describes his position on the Monetary Policy Committee - discusses how the Committee was run. Details the sequence of events which brought about the Monetary Conditions Index (MCI) - mentions Scott Roger, Donald Brash, David Archer, Arthur Grimes, Grant Spencer, Adrian Orr, David Plank, and Michael Cullen. Discusses the market opposition to the Official Cash Rate (OCR). Discusses the changes which have taken place in the area of the payments system - mentions Real Time Gross Settlement (RTGS) and Continuous Linked Settlement. Discusses how the Bank's culture has changed since the mid-1990s - mentions how the induction of new recruits has changed since he joined the Bank in 1983. Details the main challenges facing the Financial Markets Department in upcoming years - discusses his main achievements in the Bank to date.

Interviewer(s) - John Singleton

Arrangement: Tape numbers - OHC-014820, OHC-014821, OHC-014822

Quantity: 3 C60 cassette(s). 1 printed abstract(s). 2.54 Hours and minutes Duration.

Finding Aids: Abstract Available - abstracting complete OHA-5365 - edited transcript.

Search dates: 1983 - 2002

Original recordings not available for playback. Surrogate copies will be provided.

Alternative form available: Additional copy held at the Reserve Bank of New Zealand