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http://www.tvhe.co.nz/2007/08/06/floating-gst-rates/ The Visible Hand in Economics Wed, 21 May 2008 23:50:07 +0000 hourly 1 https://wordpress.org/?v=6.9.4 http://www.tvhe.co.nz/2007/08/06/floating-gst-rates/#comment-114 Wed, 21 May 2008 23:50:07 +0000 http://tvhe.wordpress.com/2007/08/06/floating-gst-rates/#comment-114 […] GST rate cuts are just as inflationary as they also “increase demand” in the economy. It doesn’t matter whether you increase someones net income by 5% or if you lower all the prices in the economy by 5%, the change in there demand for resources will be exactly the same – as a result, they are equally inflationary!  This is why the RBNZ was looking at a GST rate that increased with inflation as another mechanism apart from interest rates (an idea that many feel is silly). […]

]]> http://www.tvhe.co.nz/2007/08/06/floating-gst-rates/#comment-113 Thu, 09 Aug 2007 21:07:57 +0000 http://tvhe.wordpress.com/2007/08/06/floating-gst-rates/#comment-113 Yep you are right, I wonder if I have done this in earlier posts, I better hunt them all down.

]]> http://www.tvhe.co.nz/2007/08/06/floating-gst-rates/#comment-112 Thu, 09 Aug 2007 20:59:11 +0000 http://tvhe.wordpress.com/2007/08/06/floating-gst-rates/#comment-112 Don’t you mean the first problem is normative and the second problem is positive?

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