##cr or bank capital requirements differently? my guess is that it is it unlikely to be that stark. our shift in focus will not be the one thing that prompts us to put up the ocr instead of putting it down ; or lower capital requirements instead of raising them. however, we have no doubt that a richer understanding of te ao maori will contribute to better policy making in the long run. building strong relationships and understanding right across the economy and society helps give us the best chance of making good policy decisions, and enables us to communicate our approach back to our wide range of partners and stakeholders to build confidence and trust. i think the best recent example of this is our recent work on the future of cash ( te moni anamata ). this involved an extensive consultation right across the country on the role of cash in our society, and prompted a huge reaction of over 2, 000 responses. 21 we received a clear see ‘ emerging challenges and lessons from the maori economic renaissance ’ https : / / www. rbnz. govt. nz / research - and - publications / speeches / 2019 / speech2019 - 09 - 27. 20 see, for instance, maori economy in the greater wellington region and maori economy in the waikato region. 21 reserve bank of new zealand. ( 2019d ). the future of cash use - te whakamahinga moni anamata. summary of responses and issues paper. message that while the majority of people no longer use cash as their primary method of payment, there was a strong preference to still have cash as an alternative method for a variety of reasons, including giving koha as a maori cultural custom. furthermore, there is a notable segment of society – young, old, rural, isolated, digitally and financially excluded ( figure 9 ) – that are still reliant on access to cash. maori are over - represented in this group. figure 9. digital inclusion in new zealand source : digital divide as a result of this work on the future of cash, we have proposed that the reserve bank is giving a formal stewardship – kaitiaki – role, with clear objectives, powers and tools to ensure new zealander have an effective cash system and access to cash. conclusion i ’ d like to express my thanks to mana taiao for hosting this event and for bringing together such an esteemed group. you are here this week as part of your journey to build maori investment capability. at the reserve bank we are on a journey to build

a sense, that is just what the new provision in the policy targets agreement recognises. we didn ’ t seek the change, and yet its addition helpfully, and more formally, reminds us that there are, in the short - term, sometimes trade - offs. if that is so, then we need to think seriously about the implications for the short - term variability of output, interest and exchange rates when deciding on the ocr needed to ensure that medium - term price stability is maintained. in some circumstances, accepting a bit more short - term variability in inflation may mean a bit less variability in interest and exchange rates, and vice versa. i say may, because it isn ’ t the case in all circumstances. in many situations, the best way to minimise fluctuations in inflation, output, interest rates, and the exchange rate will be to adjust the ocr firmly and promptly to guard against imbalances emerging in the economy. none of this – in fact, nothing – will alter the fact that a growing and prosperous new zealand economy will always live in an uncertain world subject to shocks and surprises. monetary policy can assist in responding to shocks – moving to stimulatory mode as asia struck, moving back towards neutral now, heading for restraining mode as and when growth begins to put strain on capacity and threatens to reignite inflationary pressures. but we won ’ t – indeed can ’ t – remove the economic cycle, or the bulk of the big cycles in interest and exchange rates. in all this, i hope i don ’ t appear defensive when i remind you – as i must often remind myself – that in a world of huge uncertainty a very considerable element of art is involved in reaching monetary policy decisions. that means it will often only be with the benefit of very considerable hindsight that the final verdict can be delivered on whether or not the best decisions were made at the time. conclusion improving our economic growth performance is a big part of what the public look to governments and their officials to provide. but while sustained strong growth inevitably involves governments, there are severe limitations on what governments alone can do. firms, individuals and markets generate growth. and yet firms and individuals are affected in so many ways by what governments do that without a cohesive society and good government it is almost impossible to have sustained and broadly - based economic growth. much has been done in new zealand in recent decades as governments, firms and individuals have begun to awaken to the implications of the world economy for new zealand