A note on the ETS and inflation

I was about to post a comment on Eric’s blog – but then the comment got long, and I realised I needed a blog post.  So here it is.

Eric Crampton raises some important points regarding the Reserve Bank’s view on the ETS in New Zealand.  Essentially, they are ignoring it – a policy decision that a lot of analysts have disagreed with.  However, this is one of those cases where I would tend to side with the Reserve Bank, lets work through the discussion to figure out what value judgments I’ve made to get there 😉

UpdateEric discusses further here.

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GST does increase the incentive to save

In a recent Herald article (found on interest.co.nz, where I find it easier to read straight from the screen) Bernard Hickey discusses the increase in the goods and services tax and savings. The article makes a number of good points, but I do not agree with the conclusion.  For my thinking read below 😀

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