If there is a major shock, New Zealand has not got a lot of fiscal room to move.
Read MoreThe Budget Secret We Would Prefer Not to Know
fiscal deficit
A Child's Introduction to Quantitative Easing
This paper demonstrates the truism that for every financial liability is matched by an asset. A fiscal deficit creates a liability of the government. Somewhere outside government – somewhere in the private sector – there is a private asset matching this public liability.
Read MoreAusterians vs Fiscal Conservatives
Managing the government’s fiscal deficit need not mean cutting social expenditure.
Read MoreCan Te Awamutu Have its Own Independent Central Bank?
Pretending it can, or that the Reserve Bank of New Zealand can function independently from the rest of the world, could generate a financial crash.
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