"I can't interfere Alan, but if the Reserve Bank could devalue the kiwi dollar..." "I'd throw him out but it would make it worse." 10 November 2010

Prime Minister John Key and Governor of the Reserve Bank Alan Bollard are flying in a hot air balloon. John Key starts by declaring that he cannot interfere but then proceeds to do so by asking Alan Bollard to have the Reserve Bank devalue the Kiwi dollar. Alan Bollard wishes he could throw Key out of the basket but thinks it would make things worse. The surge in the kiwi dollar is related to the weak US currency rather than New Zealand's economy. Prime Minister John Key says the Government has no intention of intervening to try to bring down the New Zealand dollar, despite acknowledging the huge pressure the strong currency is putting on exporters. Mr Key says he has had no advice so far about the Reserve Bank increasing the cash supply in order to cheapen the New Zealand dollar. (Radio New Zealand News 1 November 2010) Bollard said the kiwi's strength against the US dollar, and recent volatility on a trade-weighted basis was outside the central bank's control and he talked down the ability of the Bank to push down the currency through intervention. (TVNZ 10 November 2010)

Quantity: 1 digital cartoon(s).