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Over at NBR, Rob Hosking suggests that the RBNZ is saying a couple of things following today’s statement – a couple of things I believe they are not saying. Implicitly these are: Relative to June, the Bank wants a lower average official cash rate in the coming years (so a lower track, and potentially a […]
I just noticed an article on the industrial research limited site discussing how NZ needs to think. Money quote is: What I take from that is we need to think laterally, not literally. When we think about investing in particular sectors, we must realise we will need capabilities that aren’t necessarily obvious to us. We […]
Personally, I love movies about epic historical dramas, or potatoes – but this is hardly representative of economists. And when it comes to economics two things hold true: Economists actually agree about a lot more things than people realise. Many of the things people think we agree upon we don’t. With this in mind I […]
I expect a lot of abuse for this, so don’t feel that you have to hold back. Here is my Dom post article (that was supposed to be) from the prior weekend. It kicks off as follows: The statement that we are worse off than we were is false, and society’s willingness to believe it […]
As of today, the blog is officially five years old – judging by the first post that was put up. This was a post by James on banning smoking in public places. His justification for it boiled down to: The fact that we’re currently co-ordinated on an equilibrium where people go to smoking pubs rather […]
I’ve heard people suggesting that the RBNZ has failed its mandate on the downside, eg this tweet by Vernon Small. If inflation is 0.6 excluding excise on fags and the RBNZ looks thru Govt charges then hasn’t it just breached 1-3% band on the downside? Now, I don’t mean to come out to defend the […]