"@mfhistory: @TheBubbleBubble I agree with your economic analysis re NZ - many of us can see it anecdotally as well."
19/04/2014 4:32 p.m.
. @TheBubbleBubble: keep telling it like it is NZ's tradable sector & balance of payments needs the NZ$ down. Rockstar economy? Yeah right.
19/04/2014 1:58 p.m.
RT @TheBubbleBubble: Though New Zealand has been hailed as a "safe-haven" after the Crisis, it has a very dangerous bubble inflating: http:…
19/04/2014 1:50 p.m.
RT @TheBubbleBubble: New Zealand has the 4th worst household debt-to-GDP ratio among adv. econs - worse than U.S.: http://t.co/NgMbbqYzV6 h…
19/04/2014 1:50 p.m.
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21
MAR 14

Currency Intervention


3 comment(s)

Last week we saw the first move by the Reserve Bank of New Zealand (RBNZ) to tighten its monetary policy by raising the Official Cash Rate (OCR) 25 basis points to 2.75%. Soon after we saw the New Zealand dollar reach a post-float high on the Trade Weighted Index (TWI), breaking the 80 mark.

Following the increase of the OCR, Deputy Governor of the RBNZ Grant Spencer explained...


tags: trade, tradable, exports, swiss, currency, exchange rate, monetary policy, ocr, grant spencer
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19
MAR 14

There is another way


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The change in the OCR this week and the Grant Spencer (RBNZ Deputy Governor) traffic light comments around (none) currency intervention got me thinking about Switzerland again, so I went back and had a look where the Swiss were at in terms of monetary...


tags: ocr, interest rates, currency, exchange rate, swiss, monetary policy, intervention, switzerland
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7
MAR 14

Tradable sector needs policy focus


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We are at a time where, on the surface, our economy looks to be doing well. Most of the headline numbers would indicate this, the domestic economy is growing, boosted by the Christchurch rebuild, and the agriculture and primary processing sectors have benefited from strong commodity prices. While this is all true, a deeper look reveals worrying structural imbalances in our economy.

...


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6
MAR 14

Industry – does it matter?


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It is hard to make omelettes without breaking eggs; equally, it is hard to have industrial activity without some downside. It is easy to dismiss smelly, noisy or dusty activities as unacceptable without thinking through the implications. Does it matter that the activity has been in place a long time and brings spending power into the community? Does it matter that the district plan directs...


tags: woolston, gelita, reverse sensitivity, industry, manufacturing, exports, zoning, earthquake, investment
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6
MAR 14

Looking back on 2013


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The past year has been good and bad in parts, how much of each rather depends on the characteristics of any particular business. Early on in the year, much of our focus was on the Parliamentary Inquiry into Manufacturing, run by the opposition parties. This was sparked by difficulties in the sector and a...


tags: exports, manufacturing, manufacturing inquiry, census, macroprudential, central banks, rbnz
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30
JAN 14

Is manufacturing important?


4 comment(s)

We regularly see in the media and general public discourse and some confusion about what manufacturing actually is, and consequently further discussion on what it might mean and how important it might be to our economy, becomes increasingly obscure. These are ideas that need to be crystal clear in order to properly inform and support judgments around policy.

What exactly is...


tags: manufacturing, exports, exporting, production, exchange rate, eci
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17
JAN 14

Yet another manufacturing closure


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It is sad, if not unexpected; to see another highly skilled New Zealand manufacturer close the doors, with the announcement of Fitzroy Yachts in New Plymouth will close its super yacht building operation. The Stuff article about the closure identified demand, the aftermath of the GFC and the...


tags: fitzroy, manufacturing, closure, exports, offshoring, added value, skills, employment, policy framework
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13
DEC 13

An informal cap on the pound is the only way to rebalance our economy - Telegraph


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Below is an article that featured in the Telegraph by Rodger Bootle, about the value of the pound, the detrimental effect it is having on UK exporters and possible solutions. Much of the comments and sentiment can be related to economic situation with...


tags: exports, pound, uk, exchange rate, telegraph, manufacturing
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21
NOV 13

Loan to Value Ratios


1 comment(s)

There was a recent article in Bloomberg, which talked about RBNZ’s recent moves to protect financial stability, particularly in comparison to the Federal Reserve.

New Zealand was not the first to expand the use of


tags: loan to value ratios, prudential tools, policy, interest rates, exchange rates
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12
NOV 13

Success has many fathers, but failure is..


1 comment(s)

When it comes to the manufacturing sector, what people see and promote does not always tell the whole story. Last week I attended a celebration of a recast factory in Christchurch, the owner and management had been through two moves driven by the earthquakes and now seem to have successfully arrived at their new permanent home – good on them. The determination, hard work and sustained...


tags: status quo, manufacturing, exporters, investment, failure