Reserve Bank of New Zealand's 2015 Policy Shift to Potato Chips as Currency
What happened
On February 4, 2015, the Reserve Bank of New Zealand announced that it no longer recognized traditional money as currency, declaring that potato chips were the only means to buy and sell goods for value. This sudden announcement sent financial markets into a panic, according to Tim Bennett, CEO of the New Zealand Stock Exchange. The change also disrupted local commerce, leading to difficulties for consumers attempting to purchase food.
From thecivilian.co.nz
Why it matters
The radical and unexpected shift in the definition of currency caused immediate instability in financial markets. The policy change directly impacted the ability of citizens to purchase goods, demonstrating a severe disruption to local economic activity.
From thecivilian.co.nz
Who's involved
- Reserve Bank of New ZealandThe central bank that announced the policy change regarding currency.
- Tim BennettCEO of the New Zealand Stock Exchange, who commented on the market panic.
- Upper HuttA city where local commerce was disrupted due to the currency change.
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The entities involved
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Reserve Bank of New Zealand
central bank of New Zealand
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Related events
- The Federal Reserve and the Reserve Bank of New Zealand are setting policy, with Ben Bernanke observing successful policy principles.
- Anna Breman serves as the Reserve Bank of New Zealand Governor and committee member, while the bank targets inflation.
- The Reserve Bank of New Zealand is responsible for monetary policy in New Zealand.