Firms dynamics, labour force growth, and productivity: The curious case of NZ

In this post I am going to discuss how a change in labour force growth can explain firms’ entry/ exit rates. Recent findings by Hopenhayn et al (2018) for the US motivated me to think about this relationship in a NZ context.

Furthermore, the authors linked these entry and exit rates to “dynamism” and therefore productivity growth – a link I wanted to think about a bit more carefully.

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RBA: Reserve Bank of Air New Zealand??

This article was originally posted at Interest.co.nz in 2013. The ideas are timeless 😉

Imagine being able to print your own currency.

Click a button, add a few zeros and voila you’ve increased the money supply.

The Reserve Bank can do it, and, believe it or not in a similar vein so too can Air New Zealand.

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Six methods of unconventional monetary policy

In a recent response to questions, The Reserve Bank of Australia has listed six options of unconventional monetary policy that is considered in an event of extreme policy implementation. Westpac economists have also talked about potential unconventional monetary policy tools applicable to the NZ case here – this is worth a read, but is a different list!

In this post I would like to outline the RBA’s options and hopefully make them easy to understand.

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What is the difference between sterilized and unsterilized intervention?

Recently I’ve been trying to get my head around the difference between a “sterilized” asset purchase by a central bank and an “unsterilized” purchase. Here is where I’ve gotten to – happy for any comments or clarifications!

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Tweet of the day: Growth, productivity, resources

Economic growth is a much bemoaned topic, but what this tweet nicely illustrates is that the type of growth economists often talk about differs from the type of growth that concerns a number of people. Here we’ll briefly consider how we can understand this tweet.

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The disabled aren’t worth less than the old – so why does policy act like they are?

This article was originally published on the Infometrics website here.

One of the true tests of a society is measured by how it treats its most vulnerable members, particularly the old, the young, the sick, and the disabled. There is a lot of good with New Zealand and New Zealand policy. However, on assisting those unable to provide for themselves, our provisions for people unable to work due to a health condition is an area where we are increasingly failing. 

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