Unemployment, Inflation and the Reserve Bank w/ Professor Robert MacCulloch: August 31st 2026

Labour and National are divided over whether the Reserve Bank should consider employment alongside inflation when setting monetary policy. Labour has promised to restore the Bank’s dual mandate, while National supports keeping its focus primarily on price stability. But research from University of Auckland economist Professor Robert MacCulloch suggests unemployment may have a much greater impact on people’s wellbeing than inflation. Producer Pranuja spoke to Professor MacCulloch about what that research means for the Reserve Bank debate, and whether policymakers are giving enough weight to the human cost of unemployment.