Commissions sink proposed monetary union
The Australian and New Zealand Productivity Commissions have issued a joint statement effectively scrapping any possibility of a monetary union.
Despite both commissions concluding that Closer Economic Relations (CER) initatives have been significantly beneficial to both countries, a monetary union ‘would not generate net benefits and should not proceed.’
New Zealand Productivity Commission Chair Murray Sherwin hailed the successes of CER initiatives, saying that continued co-operation between the two countries will continue to build economic gains.
“CER has been a very successful venture, with initiatives that would not have been possible with any third country,” Mr Sherwin said.
Gary Banks from the Australian Productivity Commission observed, “While a single economic market provides the ‘direction of travel’ for the bilateral relationship, how far future policy initiatives go ultimately must emerge from good public policy processes focussed on achievement of net benefits.”
The draft study published by the Commissions concluded that both countries face challenges and opportunities in a dynamic global economy. The relationship should remain outward-looking, taking into account linkages with other trade agreements and not impeding opportunities for profitable exchange with other trading partners. It should also complement productivity-enhancing policies and reforms in each country.