Dom Post editorial: Outlook

The Dom Post had a good editorial today – it can be found here. (ht the Hive)

While most economists out there appear to be turning to sensationalist comparisons of today to the Great Depression, the Dom Post has written a balanced editorial that captures how the ramifications in the credit market may impact us through the borrowing channel – namely, higher interest rates for a highly indebted nation.

One thing I would add is that our terms of trade is at a 34 year high – another factor that will help buffer us from the worst of the global economic turn down. As long as our commodity prices don’t fall (not a sure thing) to far we will be ok.

Source (Statistics NZ)