Mr Orr delivered an address to the Financial Services Council and Workplace Savings NZ’s national conference – Shaping Futures – in Auckland this morning.
“Too often, due to short-termism, we view economic growth as something that comes at the expense of a sustainable environment, or social cohesion and cultural acceptance. A short-term focus can be driven by the need to survive from day-to-day. However, it is too often driven by the desire to consume at an unsustainable rate. The desire for instant gratification or reward can often leave behind a trail of unintended consequences,” he said.
Mr Orr said a longer-term focus can affect outcomes over the next few years, through to an ‘idealised vision’ that could last many generations.
The Reserve Bank has a strong vested interest in, and influence on, the long-term economic wellbeing of New Zealand.
“The long-term issues are critical to our task of maintaining low and stable consumer price inflation, promoting a sound and dynamic financial system, and meeting the currency needs of the public.”
Mr Orr says the financial system plays a critical role: “A vibrant and healthy financial ecosystem requires deep capital markets, with a long-term horizon, to best allocate capital in Aotearoa. We have much to work on to remain sustainably prosperous, but we are committed and long-term focused,” he said.
Read the speech: ‘Geopolitics, New Zealand and the winds of change’