So teachers want a pay rise. This isn’t really surprising given the inflationary pressure in the economy. Now I don’t know too much about teachers pay, but I did find it interesting that the teachers union is saying that teachers wages should increase by 7.5%, and that this would reduce the average size of the […]
So that makes it six finance companies in 15 months. What does this mean for the NZ credit market? NZ banks should not be significantly effected. Banks are in relatively good shape, and all the recent trouble in secondary, non-bank financial institutes, is likely to increase demand for low yielding, low risk bank products. However, […]
Supply and demand, the economic scissors. This beautiful diagram explains a significant amount about how economists think: Now from what I understand, when the two curves cross we have equilibrium. This sets a price where demand and supply are equal. When the price is higher we have a surplus of goods, here some of the […]
So, our labour market is looking extremely tight. According to the department of labour all nine of the main occupation classes are currently suffering from labour shortages, and these shortages are likely to continue into the medium term. So the country needs more workers, and it takes time to breed them, so why don’t we […]
Rod Oram has had another crack at explaining why he thinks higher output will lead to lower inflation. His argument is, that higher output can help us reduce housing, labour, and business capacity constraints which are dogging the economy. The first point seems to be his main one, that there are too few houses and […]
Tourist arrivals were strong, up 3.6% on July last year. Net migration for the year to July was weak at 8,966. The merchandise trade balance continued to deteriorate, with a deficit of $6.3bn for the year to July.