Feb 08 2011
One issue I have with the constant discussion on savings, current account deficits, and consumption in NZ is how people look at it – they keep thinking that we are “consuming” to much and have needed to “borrow”. That is how we’ve been told to look at it – especially with all the talk of …
Permanent link to this article: http://www.tvhe.co.nz/2011/02/08/savings-problem-doesnt-mean-investment-problem-per-see/
Feb 08 2011
There has been a lot of commentary on asset sales around the place, so much so that I didn’t feel like I need to write anything. Dim Post mentioned a lot of the people against asset sales and also Geoff Simmons recently wrote against them. Furthermore, both Anti-Dismal (*, *, *, *, *) and Roger …
Permanent link to this article: http://www.tvhe.co.nz/2011/02/08/asset-sales/
Jan 27 2011
There has been a lot of talk about savings and rebalancing. I’m not going to touch this stuff in much detail until the Savings Working Group releases their final report. But in any case, I do need to say a little something now. I didn’t like the interim report from the savings group (but remain …
Permanent link to this article: http://www.tvhe.co.nz/2011/01/27/saving-and-consumers-a-note/
Jan 26 2011
I have long stated that targets of “financial stability” and “price stability” (monetary policy) were important – but should be performed in separate, yet independent, operational terms (here and here). Namely, keep the central bank focused on monetary policy while another organisation/operational entity solely focuses on the more long term goal of financial stability. In …
Permanent link to this article: http://www.tvhe.co.nz/2011/01/26/keeping-financial-stability-and-monetary-policy-together/
Dec 02 2010
This post from Marginal Revolution has moved me from thinking to writing. On the surface there appears to be a lot in common with the Irish, Greek, and NZ economies. All three have high net foreign liability positions, liabilities are highly concentrated through banks who are borrowing overseas, all three have experienced some form of …
Permanent link to this article: http://www.tvhe.co.nz/2010/12/02/irish-and-greek-crises-why-is-nz-different/
Nov 11 2010
As a small little open economy, international variables are incredibly important to us. The international rate of return, world prices for tradable goods, and the availability of external people, goods, and services, all have a disproportionate impact on us. When discussing external prices, people constantly hear economists talk about the terms of trade (note, the …
Permanent link to this article: http://www.tvhe.co.nz/2010/11/11/export-prices-import-prices-terms-of-trade-and-inflation/
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