Have you seen the latest estimate for Fonterra milk payouts, $6.40! I know that Holy Cow was a terrible pun to make, but that’s a huge payout. Supposedly Fonterra was able to hedge sales at $US0.71 during the time when our dollar was at $US0.80. When that good bit of management is combined with the […]
The RBNZ has made it easier for banks to borrow money off them, in order to stave off a squeeze in credit in the banking sector. This sounds fine to me, and the measures they put in place seem reasonable, there was one thing I did not understand though. It says that the bank is […]
In this article, Rod Oram discusses the two options he sees for battling inflation: Raise interest rates to slow growth, thereby reducing the pressure on our limited resources. Increase the resource base Both of these ‘strategies’ would reduce inflationary pressure. One would reduce aggregate demand; the other would increase aggregate supply. The first strategy is […]
I was reading the New Zealand Commerce Commission’s public release on the potential Warehouse merger with one of the two massive supermarket chains. On page 15, paragraph 81 of this document, Ian Morrice of the Warehouse mentions ‘the halo effect’. He states that this is a term that the Warehouse invented to describe what happens […]
An article by Adolf Stroombergen (from Infometrics) discusses how NZ is going to meet its obligations under the Kyoto protocol. First Adolf discusses the merits of a Pigovian tax as a way to cover our obligations. One line I particularly enjoyed was: “However, even if a tax has no effect on emissions, it is still […]
QVNZ three monthly house price growth continued to accelerate, reaching 12.7%pa in July Retail sales growth was up 7.2%pa in the June quarter, and 4.8%pa in the June month. The exchange rate is crazy, falling to $0.67US at one point, currently around $0.69. Robust house price growth and reasonable sales growth are not the sort […]