Written By: - Date published: 1:14 pm, January 27th, 2022 - 154 comments
The Government’s Covid 19 response, mainly via Reserve Bank measures, has enabled a mind-boggling increase in inequality, according to influential financial commentator Bernard Hickey. Covid response has saved multiple lives, but its refusal to simultaneously address inequality via taxes raises uncomfortable questions about how a leftist government has overseen a once-in-a-generation shift in wealth
Written By: - Date published: 10:40 am, November 18th, 2020 - 51 comments
This government must demonstrate that it has the ability to lead the New Zealand economy where it has stated it wants it to go. It does not want more headlines like the average house in Auckland now being priced at $1 million.
Written By: - Date published: 10:45 am, April 7th, 2020 - 93 comments
New Zealand, like many other nations, is hurtling towards economic depression faster than Covid-19 spreads. “We are going to have a depression”. “This is like an asteroid hit the global economy”. “We can print our way of this”. Reflections on what lies ahead by Simon Louisson, Bernard Hickey and others.
Written By: - Date published: 9:21 am, August 11th, 2016 - 28 comments
The Reserve Bank just cut the OCR to a historic low of 2%. And no it’s not good (economic) news.
Written By: - Date published: 11:17 am, July 8th, 2016 - 14 comments
In The Herald Liam Dann asks – Did the Reserve Bank just give two fingers to the Prime Minister?. That would be a “yes”.
Written By: - Date published: 4:34 pm, March 16th, 2016 - 36 comments
Guest Post: by Simon Louisson The news for cow cockies and the wider dairy industry just gets grimmer and grimmer, but relax everyone, the banks will be fine, according to the Reserve Bank of New Zealand today. On a day when prices fell another 2.9 percent in Global Dairy Trade auction and Fonterra announced it […]
Written By: - Date published: 6:52 am, January 29th, 2016 - 71 comments
Is Reserve Bank Governor Graeme Wheeler so concerned about the bogey of Auckland’s housing bubble that he is underestimating an equally nasty bogey – deflation? Deflation will certainly cure the problem of the property bubble, but that cure will be at a terrible cost.
Written By: - Date published: 7:15 am, August 26th, 2015 - 55 comments
John Key says New Zealand has options in the face of a share market meltdown and is not like Greece (well that’s a relief). Simon Louisson asks how real are John Key’s options? Thanks to this Government’s profligate past spending, including irresponsible tax cuts, our options have narrowed drastically.
Written By: - Date published: 9:03 am, May 14th, 2015 - 54 comments
Why is it left to the Reserve Bank to try and tackle the property bubble? It’s true – this government is recklessly complacent.
Written By: - Date published: 10:45 am, June 30th, 2014 - 76 comments
In the 1980s and early 90s the wisdom of the day dictated that our Kiwi banks were unsustainable. The buyout by Aussie banks saw huge profits and dividends head across the ditch. Russel Norman revealed an unhealthy relationship between our Reserve Bank and Westpac in an ongoing relationship that hadn’t been tendered for. This will now be tendered for and now there is a possibility for kiwi bank to win the tender. It’s about time we restored some real competition and brought more of our banking home!
Written By: - Date published: 10:45 am, June 16th, 2014 - 142 comments
The most important thing that needs to be learned is that money is nothing. Or, to be more precise, money is a tool that can be used to distribute the resources available to a society. In and of itself it has no value nor does it have a physical representation. Specifically, money is not a medium of exchange but a symbol of exchange and because of this the cost of money, usually presented as interest, should be zero.
Written By: - Date published: 9:45 am, June 13th, 2014 - 124 comments
There seems little prospect for better wage growth if the Reserve Bank is to be believed. There is a high risk that growth peaks this year without most people seeing any sign of it in their pay packets. People are being forced into the job market because stagnant wages mean more people have to work for the needs of their households. At the same time harsher rules on social welfare benefits and the low level of those benefits force people into a job market where as the bank says, there is ‘elevated unemployment’.
Written By: - Date published: 8:51 am, May 8th, 2014 - 51 comments
Yesterday the global dairy trade auction was held. Prices are still going down as they have since Feburary. The rate of decrease was less than previous drops. Only 1.1% rather than the colossal drop on April 1st. Also yesterday Graeme Wheeler, the governor of the Reserve Bank did a speech about dairy which has provided some useful reading this morning.
Written By: - Date published: 11:11 am, May 5th, 2014 - 33 comments
Rob Salmond at Polity just saved me from having to write something like this post explaining economic basics to Steven Joyce. Joyce demonstrated again why his tenure at MoBIE has been a failure for the overall economy. He fixates on one thing like the business selling milk powder to the exclusion of the overall picture. In part that is why we have neither expanding innovation or employment in our economy at present. He is a good tactical politician. But he is a fool on strategy.
Written By: - Date published: 1:14 pm, April 29th, 2014 - 32 comments
The head of the reanimated corpse of Brash should now be spinning furiously along with those fools from ACT who are into simplicity (because they can’t handle the real world). However having the Reserve Bank looking the balance of payments is pretty good. It includes the exchange rate and the export economy. They’re effectively now concerned with the exterior economy with a enforced savings tool as well as the interest rates. The government becomes largely responsible for the structural rigidities we have built up in the internal economy. That is a pretty good mix. Might have to train the MPs a bit though.
Written By: - Date published: 9:42 am, July 17th, 2013 - 48 comments
Houses are seriously unaffordable, especially for first-time buyers. Labour’s policy settings will help first-time buyers, the Reserve Bank under the current government is proposing tougher requirements that will make matters worse for them. Parties of the Left need to take this issue and run hard!
Written By: - Date published: 1:03 pm, August 19th, 2011 - 50 comments
I came across this blog called Howdaft written by Darkhorse recently. It consists of five posts written in June. Five of the best pieces of leftwing economic thinking you’ll see anywhere – something we’ve been short on recently. I’ve tried to contact Darkhorse, but no luck. If you’re out there, drop us a line. In the mean time, here’s one of the posts.
Written By: - Date published: 12:00 pm, November 12th, 2010 - 14 comments
House prices are a good indication of how the economy is going. They rose rapidly in the 2000s, stalled in 2007, plummeted in 2008, and made a slight recovery in 2009. Now they’re heading down again. The median house price is over 16% below the peak in late 2007 and I reckon they’ve got a long down way to go yet.
Written By: - Date published: 11:37 am, June 5th, 2008 - 14 comments
The Reserve Bank has left the Official Cash Rate unchanged; no-one expected a rate cut this early. It’s encouraging that Bollard has firmly signalled that interest rates will be coming down this year despite projected inflation reaching 4.7% in the September Quarter. There’s no use in the Reserve Bank strangling our economy with high interest […]
Written By: - Date published: 1:59 pm, May 16th, 2008 - 23 comments
The economy is clearly slowing. Fundamentally, it remains strong with high employment, good wages rises, and strong prices for our exports but employment and retail spending both declined in the first quarter of this year, the housing market is flat, and there is a danger that if the Reserve Bank keeps its foot on our […]