Prime Minister John Key says the Greens' call for the Reserve Bank to print more money in a bid to devalue the New Zealand dollar is "pretty wacky'' and could create a financial crisis.
Greens' co-leader Russel Norman has suggested the Reserve Bank create currency to take pressure off the NZ dollar.
Dr Norman said quantitative easing, as creating more currency is called, would mean the Government had to borrow less, domestic investors would invest in other markets, and increased supply of credit would reduce interest rates for business and reduce reliance by banks on overseas borrowing. That would lead to lower interest rates and a lower exchange rate.
Mr Key has dismissed Dr Norman's suggestion.
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