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The dismal science

The term is meant to be disparaging, but I find it incredulous that many economists still see their discipline as a science – let alone a dismal one.

Not much room at the inn

In the last year or two, some people connected to the tourism industry have talked about how high the activity levels seen in the summer months have extended into the spring and autumn months.  They talk about the shoulder season extending.

New Zealand among lowest government debts in OECD

New Zealand is one of the countries in the OECD with the lowest levels of government debts, when expressed as percentage of GDP.  In 2015, among OECD countries, New Zealand government debt was just 35.6 percent of GDP (in dollar terms New Zealand government debt was in 2015 NZ$86.1 billion).  This position enables the New Zealand Government, if needed, the ability to borrow billions of dollars to fund new infrastructure and investments within New Zealand, or prop up the economy in the face of a recession.

US Federal Reserve commences asset sale

The US Federal Reserve announced in late September 2017 that it will begin one of the largest mass sales in its history.  The US Federal Reserve is seeking to reduce the US$4.5 trillion in American security assets it currently holds.  Around 80 percent of the US Federal Reserve’s current security assets were amassed over the six year period between 2008 and 2014.  During this period the US Federal Reserve undertook three rounds of quantitative easing to boost the US economy struggling with the effects of the Global Financial Crisis.  This quantitative easing program saw the US Federal Reserve buy up US treasury bonds and US mortgage backed securities from the private sector, to stimulate the economy.