We should regulate the personal loans industry to decrease inflation?

On average, everyone agrees with significant nonconsensus between 36 voters.

Reasons To Disagree

People with money to lend ought to be free to decide who they lend their money to and at what rate. It's a simple contract between two willing parties. Gummint - keep your nose out! IT IS GUMMINTS THAT CAUSE INFLATION - ESPECIALLY LABOUR!

Reasons To Agree

Definitely, easy credit is just too easy. They are helping poor people to get overladen with debt and their is no regulation to curb this. When interest rates are hiked, the overseas investors of this debt are on the make, and its our poor who are paying. Its for own interest, that "pay day loans" are banned completely, that "interest free" purchases are banned (identifying the true interest component), and their should be guidelines on the maximum debt an individual can incur against income. eg no $6000 loans to mothers on the DPB (which can happy right now). They should buy a $2000 car, not a $6000 car.

I'm not sure how effective regulating the personal loans industry would be on inflation but it sure does need some regulating. There are too many scum bags finance companies getting people into debt that just can't afford it!

Instead of regulating inflation with higher interests rates, what would the effect be if the Reserve bank lowered interest rates but increased the deposit people required to get loan approval? Potentially this would increase NZ savings, reduce the private sector debit burden and overall be a positive influence on the NZ economy.

Money has been too easy to get. Therefore we have become a nation of spenders rather than savers. If we tightened up the money supply (using tools other than interest rates - which appears to be the only tool the reserve bank uses to do this) we wouldn't have the current credit crisis at the moment

Here it is again. I agree with the preceding paragraph. Stop usury. Make credit harder to obtain, not more expensive. Regulate hire purchase. Require 20% deposit on house purchases. Put the brakes on 2nd mortgages for frivolous spending.