So, we’ve had the Budget. The one time that we need a shift in government policy – and nothing happens. Treasury believes that the size of our economy is fundamentally smaller, that there has been a permanent shock to our income. As a result, spending needs to fall or taxes need to rise – 11 …
Monthly Archive: May 2009
Permanent link to this article: http://www.tvhe.co.nz/2009/05/28/new-zealand-budget-2009/
May
28
2009
New Zealand budget 2009: Is there a cost from a downgrade?
I have noticed only two extreme positions in the media about a downgrade: It will be terrible – it will cost the govt alone $600m pa It doesn’t mean much – the credit ratings are “dis-credited” Let me tell you something – the truth is inbetween. Treasury’s estimate of the cost of a credit downgrade …
Permanent link to this article: http://www.tvhe.co.nz/2009/05/28/new-zealand-budget-2009-is-there-a-cost-from-a-downgrade/
May
27
2009
New Zealand budget 2009: Is increasing GST the solution?
In New Zealand we are currently concerned about a downgrade from S&P. They want us to be running operating surpluses from 2014, and we aren’t quite sure how to do that in the face of a massive global recession. The suggestion I have is to increase GST rates from 2011. Now, if we believed that …
Permanent link to this article: http://www.tvhe.co.nz/2009/05/27/new-zealand-budget-2009-is-increasing-gst-the-solution/
May
27
2009
New Zealand budget 2009: Expectations
Defective equilibrium points out that there has been little discussion about expectations for the budget around the NZ blogsphere. As a result, let me lay down some expectations here. These are the things I strongly suspect will be in there. Future tax cuts to be postponed into the indefinite future, Provisions for future spending to …
Permanent link to this article: http://www.tvhe.co.nz/2009/05/27/new-zealand-budget-2009-expectations/
May
26
2009
Cartoon: Recessions don’t hurt everyone
(Source GWS) Remember, even during the Great Depression there were people that were better off than they would have been. There are always winners and losers. When prices are falling, and when relative prices change, there are people who benefit from that – as well as people that lose out. During such an event we …
Permanent link to this article: http://www.tvhe.co.nz/2009/05/26/cartoon-recessions-dont-hurt-everyone/
May
25
2009
New Zealand budget 2009: Downgrade alert?
From a member of S&P, Mr Curry: It is hard to put a timing on it, but we would expect that over the cycle of the Government [it] would be recording operating surpluses within, I guess, the next three to five years. So that is the requirement to avoid a downgrade. From the government: Asked …
Permanent link to this article: http://www.tvhe.co.nz/2009/05/25/new-zealand-budget-2009-downgrade-alert/
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