So says Dr Cullen, and I think his description of why is pretty spot on: it will be difficult in two years to return to a situation where bank deposits were no longer insured by the government When financial institution base there decision on the fact that this new framework exists, changing the framework would […]
Frederic Bastiat: In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if […]
So the Baltic Dry Index (an index that implies what the cost of shipping for exporters will be – in as far as it represents the fees of the people running ships) has collapsed by about 79% so far this year. As the supply of ships is incredibly inelastic in the short term, this is […]
That is the view put forward on the Rates Blog by Neville Bennett. It is also a view that Berl has enjoyed some airtime with. It is also, in part nonsense from a bunch of very smart people. Lets flesh it out a bit. The quote that captures the essence of the argument (and the […]
Just quickly, I have to correct this statement by FrogBlog: In other words if we continue to grow at 3 percent per year every year, as economists would have us do, in 100 years time we will be using and consuming 19 times more than we currently do No, no we wouldn’t. Remember a little […]
I was surprised at the time, but not doing an emergency cut appears to have been the right choice – go RBNZ 😉 I get this impression from here: Source (NBNZ)