New Zealand's central bank just made a grave error—Fed chair Kevin Warsh should learn from it
· livemint.com
While central banks needn't pander to market participants, surprising them is not helpful either. The Reserve Bank of New Zealand just had to learn that the hard way. Here's why the tight-lipped chair of the US Federal Reserve would do well to learn from this episode.
The reaction to the surprise was severe. The New Zealand dollar plunged the most in almost 19 months against the greenback once it was clear that the status quo...