@NewsroomNZ @bernardchickey Good comments today on radio today @bernardchickey RBNZ soft on pushing back on asset p… https://t.co/m0Sh7fohHG
7/12/2017 6:07 PM
@NewsroomNZ @bernardchickey Hard to lead with thinking based on incomplete model of the economy: inflation targetin… https://t.co/kDCAMJM1HV
7/12/2017 8:27 AM
RT @TheMinskys: Watch @StephanieKelton brilliantly explain why we should stop talking about the #deficit as a problem and start talking abo…
5/12/2017 8:08 PM
RT @TheMinskys: "Public-private partnerships conflate public and private interests, and in conflicts between them, the private interests wi…
26/11/2017 12:02 PM
RT @PolicyObsAUT: Is the NZ public service restructured too much? New Briefing Paper by Julienne Molineaux from @autuni https://t.co/BUISP…
26/11/2017 12:02 PM
RT @Ozlandscapes: #Lateline story on demise of Darling River, at hands of irrigated cotton, is yet another example of how money determines…
26/11/2017 11:58 AM
@mrmedina @Tat_Loo At best redundant. ..
25/11/2017 5:46 PM
@liamdann 2006 again?
22/11/2017 8:18 PM
RT @PolicyObsAUT: And now a report from Australia, saying high house prices are not linked to under-supply. Could policies supporting specu…
22/11/2017 8:46 AM
RT @FT: 'This really is the first time we see the news organisations coming together like this in order to address this crisis of trust in…
20/11/2017 12:20 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.

APR 10

More on the Postindustrial Fantasy

Yet more comment from the NZIER who at once state the obvious, miss the obvious and in so doing draw less than penetrating conclusions. That article is here:


The statement that some stuff has to be done offshore is obvious, there is a whole world of technology that has not taken root in New Zealand in large part because of past policy choices that have stood by as nascent industrial capability was nailed by an overvalued exchange rate.

The idea that production can be separated from the other activities is discussed here:



Our long run policy bias to an overvalued currency makes it artificially attractive to offshore activity; that offshoring further hollows out local capacity and capability forcing a second round of offshoring – a process that has seen embedded capability atrophy and ultimately fail in New Zealand.

This one from the Economist is worth a look:



It is bloody daft notion that we can do without manufacturing on exports,  as a percentage of GDP New Zealand does more exports than China and UK but less than Germany. Manufactured good are currently 26% of exports, down from over 30% a years or two ago, but roughly the same percentage as primary production, processed primary and services, would anyone suggest we do without farming?

Largely it is only those who have never operated an international supply chain that see the idea of activity separation, and consequently policies that ignore that outcome, as natural and desirable. The less we do the less we are able to do, and doing less will less inform and less spur the process of innovation.

We might now be in the end game losing the capability to elaborately transform stuff we severely limit our options and have placed our destiny in the hands of others.

Over time an overvalued currency has stolen investment from the tradeable sector, productivity continues to fall, as we see more of the same money will become increasing expensive, as our currency be too risky for the speculators and bereft of a real economy what will step into the breach?



tags: postindustrial, nzier, monetary policy
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.