Maximising the employment rate under the new Policy Target Agreement set by the Reserve Bank will make little to no difference according to one former governor.

The Reserve Bank has been issued a new set of instructions which brings in an employment mandate.

Don Brash was the Reserve Bank governor for more than a decade.

He told Mike Hosking there are many factors that contribute to the employment rate and monetary policy is not one of them.

"It depends on the level of education, labour laws, welfare benefits etc. Greater inflation doesn't make a long-term impact on employment."

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