RT @monteiro: Next Friday. We’re out. The only thing Twitter cares about is engagement. Let’s stop giving it to them. Reclaim your life. Re…
13/08/2018 11:51 AM
RT @bernardchickey: ‘Heaven help us’ https://t.co/X8mdEKCi6X
1/08/2018 3:35 PM
RT @EvonomicsMag: Biologist Lixing Sun: "Existing data show that across the OECD nations, the higher the level of social trust, the greater…
30/07/2018 4:08 PM
RT @Adherium: Adherium Receives Additional U.S. FDA 510(k) Clearance, Setting in Motion a Full U.S. Consumer Launch of the @GetHailie ™ Sol…
30/07/2018 4:03 PM
RT @garths: @Smartinhaler @Adherium "Should We Make A "Smart" NHS?" via @forbes https://t.co/soC1TVv5Yr
30/07/2018 4:00 PM
Chinese Citizens Are Using Blockchain to Warn Each Other of Unsafe Vaccines https://t.co/bc8uVw9goZ #SmartNews
26/07/2018 5:03 PM
RT @Adherium: Adherium's @GetHailie solution, a sensor-based medication monitoring system, heads for direct-to-consumer sales with an eye o…
19/07/2018 8:46 PM
RT @bernardchickey: Awful, awful situation because we didn't invest in infrastructure and people to deal with an unprecedented population s…
28/06/2018 8:28 PM
Excellent preso from Steve Keen: https://t.co/z4nzCk3DpX
23/06/2018 10:02 AM
Automation and jobs not a bad debate: https://t.co/NZjeEHHMsj
9/06/2018 1:35 PM
Recent Post Comments
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.

Print-friendly
26
JAN 11

Change for 2011?




With an election looming at the end of the year, 2011 needs to be a turning point for New Zealand’s economy. 2010 demonstrated that the problems brought out by the recession have not been resolved and the same imbalances that existed in the era of economic growth have persisted in the downturn.

Economists expect the figures to show that the economy grew in the last quarter of 2010, meaning that a double dip recession will be avoided, but regardless of the exact growth numbers it is clear that we still have a problem. The graph below shows that any talk of rebalancing is wrong. Lending to business and agriculture has declined rapidly while lending on non-productive housing is holding up.



RBNZ

Here are five key policies needed to turn the economy around in 2011:
1. Capital controls to curb offshore debt growth alongside lower interest rates – a new focus on currency stability.
2. A balanced tax system.
3. R&D support that matches or betters our trading competitors.
4. Productive investment incentives, early stage business, plant and patent write offs.
5. Compulsory savings.

These five policies are key to turning New Zealand from a debt reliant importer of goods into a productive export focused economy.

Attention to currency volatility is important so that exporters are encouraged to invest in their businesses without the fear that random exchange rate changes will trash their profitability. A balanced tax system including taxation on property is needed so that capital is used to invest in revenue and job generating businesses rather than assets.

Investment and savings incentives are needed to ensure that there is an adequate level of local capital available to firms and that there are the right signals to invest this money in the real economy.

2010 was largely a wasted opportunity to rebalance New Zealand’s economy; 2011 must see some more coherent, effective and significant changes.
 


tags: rebalancing, capital controls, balanced tax, r&d
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.