Bollard has shown who wears the pants. In raising the OCR today, he has shown his disregard for Dr Cullen’s mischievous feints at invoking his powers to override the price stability objective. He has also shown the market that he’s willing to back up his tough talk on the housing market – now on its …
Category Archive: Macroeconomics
Permanent link to this article: http://www.tvhe.co.nz/2007/07/26/you-don%e2%80%99t-mess-with-the-guv%e2%80%99nor/
Jul 26 2007
A Strict Application of “Kiwi Made” Actually Hurts Our Exporters
While I am all for supporting the domestic economy, I think that a strict interpretation of the requirements for a good to be labelled “Made in New Zealand” actually harms our exporters. People get upset when they find out that something that is “Made in New Zealand” is manufactured using inputs purchased from another country. …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/26/a-strict-application-of-kiwi-made-actually-hurts-our-exporters/
Jul 26 2007
One hike too far
So the RBNZ lifted rates. However, they said this is the end, no more hikes this year. I’m can understand why Bollard wanted to lift now, Cullen threatened his manhood and Bollard had to show he had some balls. I still think this lift is unnecessary, house sales are easing and firm profit margins have …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/26/one-hike-too-far/
Jul 25 2007
People in the UK don’t want to pay more fuel tax
And I’m not bloody surprised either. They already pay a very significant fuel tax, one that I feel covers the externalities associated with their fuel consumption. When you have an externality, the government should tax to the point where the marginal cost of consumption is equal to the social marginal cost of consumption, taxing anymore …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/25/people-in-the-uk-dont-want-to-pay-more-fuel-tax/
Jul 24 2007
Why the Exchange Rate Makes Me Smile
So the exchange rate has reached record highs much to the despair of the government, reserve bank and local exporters. There is one sector of the economy that is poised to benefit from this though…. ME Given all the noise coming from the government about the exchange rate being overvalued and the fact that the …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/24/why-the-exchange-rate-makes-me-smile/
Jul 24 2007
Monetary policy: Aussie vs NZ
At least one Australian and one New Zealand commentator feel that the RBNZ is too focused on inflation. They use the example of the RBA, which seems to be controlling inflation without trying to strangle the life out of the economy. Do people agree with this? Is our Reserve Bank an inflation zealot? Or does …
Permanent link to this article: http://www.tvhe.co.nz/2007/07/24/monetary-policy-aussie-vs-nz/
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