Economist Sees Big Task For Monetary Council

Press, Volume C, Issue 29498, 27 April 1961, Page 16

Economist Sees Big Task For Monetary Council

(new Zealand Press Association)

WELIINGTON, April 26. New Zealand's experiment in establishing the Monetary and Economic Council would be watched with keen interest by all who wished to see the Western economy sustain its supremacy and leadership, said the noted New Zealand born economist. Sir Douglas Copland, today. Mr Holyoake was to be congratulated in taking so forthright a step, he said. The council, which apparently would be a permanent institution to review periodically general economic policy, had two features that were novel.

The first was that it was independent and free from political control. The other was that it had the right to publish its reports. Sir Douglas Copland said he did not think there was any similar organisation elsewhere in the world, certainly not in the Commonwealth. •Tlie council has a very great responsibility in establishing a reputation for objectivity," he said. "and through the objectivity and soundness of its reports, it can make a big contribution to educate public opinion on the basic problems of economic growth in a modern democracy and of reconciling economic growth, rising living standards, a high level of employment and price stability.

"This will prove a very complex, difficult task and has not yet been achieved in any Western democracy. "For this reason alone, the work of the council will be important in demonstrating the difficulties of reconciling economic growth with the other desirable elements of policy. "It is to be hoped, however. that economic growth will be placed in the front line because of the high rate of growth in the communist world and the great increase of population in, the underdeveloped world.” The council might be the beginning of what he had

called a “fourth estate” in government. Sir Douglas Copland said.

The ‘.'fourth estate” would be charged with the responsibility of surveying the state of the economy periodically in reports to the Government which would be published as submitted.

it would, necessarily, have to take account of the level of employment, standard of living, and the degree of economic stability attainable. "Here again it is important to emphasise that growth must be sustained at a high level if the Western economy is to meet the challenge of the communist world and the hopes and aspirations of the under-developed world.” he said.