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“Let’s do it right, now!”: Setting interest rates

There are a few things about the way we have run the place over the years that I reckon are not the best.  First up, are the side effects of the RB increasing interest rates, on the back of forecast consumer price inflation.  My concern has been vindicated recently by research done at the IMF, the font of monetary rectitude.  The IMF researchers found that small countries running RBNZ-style policies not only suffered external funds imbalances, but they were also a key cause of the Global Financial Crisis.

Rebalancing NZ’s macroeconomy

This note assesses whether progress has been made towards rebalancing the underlying structure of New Zealand’s macroeconomy.  We explore five influences driving New Zealand’s macroeconomic imbalances – tradable sector activity, the burden of inflation control, net external trade receipts, expenditure in the domestic sector, and the direction of finance.

A Budget for the faithful ...

A comprehensively underwhelming budget.  Holding the line, no surprises, business as usual, things are fine, are the messages.