Interview with R. Lindsay Knight

Assistant Governor and Deputy Governor between 1977 and 1990. Talks about joining the Reserve Bank of New Zealand as an office boy in 1948 before working in the Chief Accountants Department for 4 years. Mentions leaving briefly to become a saleman before returning to work in the Chief Cashier's Department, followed by the Economic Department. Talks about studying accounting, banking, and economics at Victoria University of Wellington. Discusses his appointment as Assistant Chief Economist, then Assistant Chief Cashier. Discusses the then Deputy Governor's establishment of the Economic Department - details the work done by the Department. Discusses the economic policy which dominated Treasury until 1989 - mentions successive Treasury Secretaries' reluctance to give the Bank more power. Explains the role of commercial banks in New Zealand's financial system.

Talks about successive Governors Edward Fussell, Gilbert Wilson, and Alan Low. Mentions the contribution made by economists Roderick Deane, Len Bayliss and Bob Familton. Mentions Secretary of Treasury, Henry Lang. Describes his involvement in BOP forecasting, the preparation of OET statistics, and a report on finance companies. Mentions capital issue regulations - recalls own frustration at financial sector controls. Talks about his appointment as Registrar of Overseas Takeovers - talks about Prime Minister Robert Muldoon's approach to this area. Mentions becoming chairman of the Overseas Investment Committee - discusses how he set up the Foreign Investment Committee. Comments on his role in promoting the liberalisation of inward foreign investment policy. Talks about the part he played in organising loans to Peru in 1969. Discusses being seconded to the Board of the World Bank in Washington under Robert Macnamara - details his time there.

Discusses his return to New Zealand and appointment as Chief Cashier at the Reserve Bank - talks about becoming a member of the Policy Committee. Discusses the Kirk Government coming into power - talks about the Bank's attempts to free up interest rates - mentions Henry Lang and Alan Low. Discusses the Kirk Government's reation to the oil shock - realls John Cook's involvement in loan negotiations with Saudi Arabia. Discusses own role in the review of exchange rate agreeements. Talks about his three-year secondment in 1979 to Papua New Guinea as Deputy Governor of the Reserve Bank of Paua New Guinea.

Mentions formation of the Knight-Scott Committee - describes the activities of the Committee - mentions Graham Scott and Spencer Russell. Discusses his impressions of Robert Muldoon - talks about the pre-election crisis, the overvalued exchange rate, and the Bank's involvement in the forward exchange market. Describes Roger Douglas's agenda and the reaction of officials. Discusses his part in implementing policies on new banks. Discusses the problems the DFC and BNZ found themselves in during the 1980s. Refers to the changing balance of power between Treasury and the Bank in the 1980s. Talks about the Reserve Bank of New Zealand 1989 - details the role of the Governor under the Act. Comments on the setbacks experienced by New Zealand in recent years.

Interviewer(s) - John Singleton

Arrangement: Tape numbers - OHC-014816, OHC-014817

Quantity: 2 C60 cassette(s). 1 printed abstract(s). 2.30 Hours and minutes Duration.

Finding Aids: Abstract Available - abstracting complete OHA-5363.

Search dates: 1948 - 2001

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

Alternative form available: Listening copies OHLC-008570 - OHLC-008571

Additional copy held at Reserve Bank of New Zealand Archive