Have you seen the latest estimate for Fonterra milk payouts, $6.40! I know that Holy Cow was a terrible pun to make, but that’s a huge payout. Supposedly Fonterra was able to hedge sales at $US0.71 during the time when our dollar was at $US0.80. When that good bit of management is combined with the …
Category Archive: New Zealand Economics
Permanent link to this article: http://www.tvhe.co.nz/2007/08/24/holy-cow/
Aug 23 2007
RBNZ introduces some liquidity
The RBNZ has made it easier for banks to borrow money off them, in order to stave off a squeeze in credit in the banking sector. This sounds fine to me, and the measures they put in place seem reasonable, there was one thing I did not understand though. It says that the bank is …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/23/rbnz-introduces-some-liquidity/
Aug 23 2007
Outgrowing the inflation problem
In this article, Rod Oram discusses the two options he sees for battling inflation: Raise interest rates to slow growth, thereby reducing the pressure on our limited resources. Increase the resource base Both of these ‘strategies’ would reduce inflationary pressure. One would reduce aggregate demand; the other would increase aggregate supply. The first strategy is …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/23/outgrowing-the-inflation-problem/
Aug 20 2007
The week in numbers
QVNZ three monthly house price growth continued to accelerate, reaching 12.7%pa in July Retail sales growth was up 7.2%pa in the June quarter, and 4.8%pa in the June month. The exchange rate is crazy, falling to $0.67US at one point, currently around $0.69. Robust house price growth and reasonable sales growth are not the sort …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/20/the-week-in-numbers-4/
Aug 17 2007
Michael Cullen should learn when to stop talking
Again Mr Cullen decided to tell us what he thinks about monetary policy. To tell you the truth, I wouldn’t care what he says (even with his Phd in Social and Economic history) if it wasn’t for the fact that he could force a change in monetary policy. He is the finance minister, in public …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/17/micheal-cullen-should-shut-his-mouth/
Aug 16 2007
New Zealand Currency in Free Fall
So the NZ currency is currently at $0.705US, implying that it has fallen $0.105US in two weeks. What the hell is going on? As far as I can tell, investors in the US are nervous about some perceived economic contagion from the troubles in the sub-prime mortgage market. As a result of this economic uncertainty …
Permanent link to this article: http://www.tvhe.co.nz/2007/08/16/currency-in-free-fall/
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