Price rises and controls
Sir,—A. Mackay (April 6) was correct in taking me to task for my loose reference to the Government printing money. Coins and notes in circulation constitute only about 4 per cent of the total money supply. Most of the money used in New Zealand is in the form of credit of one sort or another. It is through the creation of Reserve Bank credit that the Government “prints” money. In short, when the Govern-
ment borrows from the Reserve Bank, which it owns, it borrows from itself. Over the last 10 years successive governments have increased their debt to the Reserve Bank (the Government) from $lOO million to $2200 million, a 22-fold increase. That is what I mean by “the Government irresponsibly printing money.” The apparently magical creation of wealth is an illusion, but is seductive. It is the fallacy of Social Credit’s policy. — Yours, etc., COLIN H. ALDRIDGE. April 12, 1984.
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Press, 14 April 1984, Page 18
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156Price rises and controls Press, 14 April 1984, Page 18
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