Story: Reserve Bank

Floating the New Zealand dollar

Floating the New Zealand dollar

In 1985 the New Zealand dollar was floated. This meant that the market would control the international value of the dollar instead of New Zealand. The idea was that balance-of-payments crises would not occur because the currency would self-correct. In practice, balance-of-payments problems continued to occur. This cartoon, featuring Minister of Finance Roger Douglas, takes a rather negative view of the float – the boat is a kitchen colander and thus full of holes.

Courtesy of Peter Bromhead

Using this item

Alexander Turnbull Library
Reference: A-314-1-019
Cartoon by Peter Bromhead

Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Mātauranga o Aotearoa, must be obtained before any re-use of this image.

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How to cite this page:

John Singleton, 'Reserve Bank - Reserve Bank, 1936 to 1984', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/cartoon/33456/floating-the-new-zealand-dollar (accessed 18 November 2018)

Story by John Singleton, published 20 Jun 2012