Entries by Matt Nolan

I think I’ve found a bubble

There is a lot of talk about bubbles, and how we need to do something to prevent them.  I find this difficult, as even if we could observe bubbles we also really need to justify why we should lean against them – as long as the cost falls on those getting themselves involved in the […]

Another sentence

The shift from debt-financed consumption to greater saving and investment is also expected to support the household sector’s capacity to repay its debt. This is from the RBNZ’s Dec 10 bulletin.  This is a good article, but the nature of this specific sentence grates me.  I would suggest reading and enjoying the article for what […]

Sentence to ponder

Via Stats NZ Increases in borrowing, interest paid, and investment in housing by households and the private unincorporated producers sectors (sole traders, partnerships) suggest that New Zealand increased its international indebtedness through offshore borrowing to finance housing, among other things. That is from their new Institutional Sector Accounts, which I’m going to spend a bit […]

Irish and Greek crises: Why is NZ different?

This post from Marginal Revolution has moved me from thinking to writing. On the surface there appears to be a lot in common with the Irish, Greek, and NZ economies.  All three have high net foreign liability positions, liabilities are highly concentrated through banks who are borrowing overseas, all three have experienced some form of […]