Macroeconomics may have incentive problems, and there may be a lot of room for improvement or refocus, but I think saying that “contemporary macroeconomic theory has failed” is going too far. Now, I’ve shown myself to be no fan of some of the economics that has, and will, be performed – I quoted approvingly when […]
The Rates Blog is reporting that new Treasury figures will indicate that New Zealand’s expected economic situation will be revised downward in the medium term. However, the RBNZ’s latest MPS (effectively a forecast) states that we will get back to “potential” – with 4.8% growth in March 2011 and 3.8% growth in March 2012. Treasury […]
How much? I am currently away from my computer – this was a time delayed post 🙂 Still go to the RBNZ site and post down in the comments what happened 😉 How does it compare to our discussion yesterday? Update: 50bp cut. Medium term growth is strong, and we get back to “potential” by […]
Can wealth have really been destroyed if it never really existed? “Between 40 and 45 percent of the world’s wealth has been destroyed in little less than a year and a half (*) I don’t see this as wealth destruction. Fundamentally, people have realised that wealth they thought existed doesn’t exist. House prices will not […]
Good work boys. Another Champions League Final on the cards?
The Reserve Bank will decide how much to cut interest rates tomorrow. The market is currently expecting between a 50bp and a 75bp cut. However, there is still potential for a 100bp cut if the Bank downgrades their growth forecast sufficiently. Ultimately, it will all be about the Bank’s forecast growth. In normal circumstances we […]