Stephen King: How hot money has put central bankers worldwide in a sweat

Raising interest rates simply increases the magnetic attractions of New Zealand for foreign investors
Published: 14 May 2007

It's not often that you'd choose to mention the UK, France, New Zealand and China in the same breath, but when it comes to the future of monetary policy, there's good reason to do so. In all four countries, policymakers are scratching their heads, wondering what to do next. Admittedly, they're starting from different positions, and their conclusions are likely to diverge significantly, but each country has some sort of monetary conundrum. Given that inflation targeting was supposed to be the answer to our economic worries, this is a little surprising. continue...