So because the dollar has eased back following the OCR people have decided that the statement was dovish (ahh the Herald did this too). Fact, no it wasn’t – it was a more hawkish than expected statement. Probabilities of rate increases did rise following the statement. Remember something here, the link between the exchange rate …
Monthly Archive: July 2011
Permanent link to this article: http://www.tvhe.co.nz/2011/07/29/historical-revisionism-on-july-ocr/
Jul
29
2011
Damned if you do, damned if you don’t
The daily post for today has been delay to next week – as this issue needs to be covered now. That’s what the RBNZ is likely hearing when columns like this appear. This one is from Bernard Hickey, where he bemoans the Bank’s decision to signal an increase in interest rates (which will increase long …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/29/damned-if-you-do-damned-if-you-dont/
Jul
27
2011
Core funding ratios, monetary policy, and trade-offs
In a recent Herald article, Geoff Simmons discusses the core funding ratio. I work near the GMI team, and I have a lot of time for their outside the box thinking on issues – however, this is one case where I will have to respectfully disagree with the conclusions. What was the conclusion? It was …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/27/core-funding-ratios-monetary-policy-and-trade-offs/
Jul
26
2011
A independent tax authority is not undemocratic – it is more democratic
In an act of striking economic naivete and breathtaking historical revisionism, writer Joe Beagelhole marshals the European debt crisis as evidence that allowing political institutions to use a lack of transparency to rack up debt is sustainable, and that we don’t need an independent body making the full cost of fiscal decisions transparent to the …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/26/a-independent-tax-authority-is-not-undemocratic-it-is-more-democratic/
Jul
25
2011
Keeping NZ inflation in perspective
Holy shit. Since I’ve started getting the chance to read opinion pieces again I’ve noticed one extreme theme running through them – a sharp and angry fear of inflationary pressures. This in itself doesn’t bother me, but it has been combined with people saying that ALL of the following will happen: The economy will implode …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/25/keeping-nz-inflation-in-perspective/
Jul
22
2011
The day where Panadol was needed
I realise that oft times my writing style, and the writing on this blog is very “faux academic”. That suits my purposes as I like having the fully described arguments that come from this sort of writing – however, it can also be boring. In order to help related economic ideas to the common man, …
Permanent link to this article: http://www.tvhe.co.nz/2011/07/22/the-day-where-panadol-was-needed/
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