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Last month, I sent an article to the NZ Herald, checked over by the University's media team, critiquing National Leader Luxon's five point plan for the economy, arguing it was similar to Labour's policies. It was promptly published. It was not liked by National Party MPs.

To promote balanced debate - and a quest for the truth that lies at the centre of academic endeavor - I penned a companion article about how Labour Leader Hipkins has not provided any solutions to address the root cause of our cost-of-living problems - namely NZ's low productivity. Instead his strategy has been to blame others and blame events. He's blamed the Rogernomics reforms of 40 years ago, he's blamed the virus, now he's blaming the weather. The Herald rejected the article.

At least we have you, the readers of this blog, so I will publish it tomorrow here.


In the aftermath of the Christchurch Earthquake, the RBNZ went and cut the OCR by 50 basis points in early 2011. Here's why: “We have acted pre-emptively in reducing the OCR to lessen the economic impact of the earthquake and to guard against the risk of this impact becoming especially severe,” Bollard told reporters in Wellington. “While it is difficult to know exactly how large or long-lasting these effects will be, it is clear that economic activity, most certainly in Christchurch but also nationwide, will be negatively impacted.”

In the aftermath of Hurricane Gabriel the RBNZ has just decided to do the opposite, putting up the OCR by 50 basis points, notwithstanding the Bank's near-identical observation in 2023 to Governor Bollard's in 2011 that, "Cyclone Gabrielle and other recent severe weather events have had a devastating effect on the lives of many NZ'ers. .. It remains unclear how significant the impact of these events will be on NZ’s longer-term productive capacity".

No comment. Maybe you can go figure.


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Robert MacCulloch

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