The Voters’ Anger

The disenchantment of British voters with democracy, we are told, is to be explained by the anger they feel at the failings of politicians. Those failings, it is supposed, are to do with the perception that politicians are “on the make”; but that conclusion – while no doubt partly justified – is surely far from […]

Why Ignoring the Exchange Rate Widens Inequality

Last week’s report of an unexpected deterioration in our terms of trade adds a further and unwelcome twist to an already distressing story – the damage being done to our productive sector by an overvalued dollar. The recent admission by the new Governor of the Reserve Bank, Graeme Wheeler, that the dollar is overvalued is […]

The Same Tired Old Excuses

As job losses reach crisis proportions, and many point the finger at an overvalued exchange rate, we have to put up with the same old tired and ill-informed assertions to the effect that overvaluation is not the culprit. Those who say this usually make two assertions; first, the exchange rate is irrelevant and secondly, there’s […]

Opening Our Minds

Over the past four years of recession, we have seen a re-run of the debate that surrounded the Great Depression. In the 1930s, there were those, like Herbert Hoover, who insisted that austerity – by cutting government spending – was the way to beat recession. Others, like John Maynard Keynes, were convinced that the remedy […]

Needless Casualties in the Economic War

On Anzac Day, we remembered the sacrifice made by thousands of young New Zealanders at Gallipoli – sent to their fate because those with the power to make decisions had neither the wit nor the courage to depart from a course that everyone knew was doomed to disaster. A day after Anzac Day, we learned […]