This is worth a watch: in a world sinking in debt it is time to fix the systemic problem. Steve Keen has some different ideas:

http://news.bbc.co.uk/2/hi/programmes/hardtalk/9641873.stm

It is exasperating to watch gossip about what may or may not have been said distract from serious matters in an election process. Why is it that gossip and speculation warrants more media attention than pressing issues around policy and policy options? Once the distraction of the election has passed, whoever forms the new government must look to prudence and economic reform – prudence will...

tags: election 2011, european crisis, r&d, monetary policy, capital gains tax

The political race has come to the fore after the end of the rugby world cup. There has been some interesting policy released. Coming on top of earlier releases on fiscal and monetary policy Labour’s savings and superannuation policy seems to extend some new thinking and different policy directions. It will be interesting how the different parties see the economy in general and in...

tags: changenz, election 2011, superannuation, credit rating, trade balance

The voice of the real economy needs to be stronger in New Zealand, every year, but particularly in an election year. The NZMEA has launched a website, Changenz.co.nz , to give a clear voice to the needs of the tradable economy and ultimately the needs of a sustainable New Zealand economy.

The last three years has seen few gains for...

tags: exchange rate, tax balance, research and development

Credit rating downgrades from Fitch and Standard and Poor’s have once again highlighted New Zealand’s problem with balancing its current account with the world. Low local savings and an appetite for asset backed offshore debt, combined with a lack of the focus on the tradable sector are once again driving our current account deficit.

Fitch also identified the problem:
"The...

tags: current accouint deficit, credit rating, external debt, currency

The potential for European countries and their banks to default on debt raises the question of what impact these defaults would have on the global economy.

• What impact will the European crisis have on the rest of the world?
• What has been learnt from the 2008 financial problems?

If the economic crisis in 2008 did not demonstrate some serious financial problems the...

tags: european crisis, vickers commission, productive investment, rbnz

This years’ election can deliver a change in our economic framework and address an already significant debt problem. Elections over the past couple of decades have tended to be contests of who can give the largest handouts rather than a legitimate policy contest. This one must be different.

There has been no significant action to address our debt problem. Politically difficult...

tags: election 2011, superannuation, added value, exchange rate

Further instability overseas is making the debt path proposed in the Budget look increasingly optimistic. After the Budget we were left with the feeling that the Government had underestimated the extent of New Zealand’s debt problem – there was little done to further limit debt expansion or rebalance the economy to grow export earnings.

This chart shows that relying on...

tags: treasury forecasts, budget 2011, exchange rate, debt

Here is the text of a presentation I did for 'Fresh Ideas for a Productive Economy', a seminar organised by the Fabian Society and held in Parliament.

The presentation slides are available here.

Recently the Prime Minister stated during a presentation that, “if I...

tags: fresh ideas for a productive economy, exchange rate, tax balance, fiscal incentives, monetary policy

Labour’s tax plan announced last week represents an effort to rebalance the economy towards productive enterprise and away from unproductive assets. With the tax system as it is now investment in assets is favoured. Assets provide few jobs and little tax revenue to the Government. The same investment in the productive economy provides jobs, export earnings or import substitution, higher...

tags: capital gains tax, current account deficit, household debt, overseas debt