Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Opinion: Economic Debate - Formative Not Robust

Business Think Tank 4.2.00.

Economic Debate Formative - but not yet Robust

By Howard Scott

I was pleased to see further economic debate in the NZ Herald today but have concluded that it isn't deep or robust enough to start seeking INTEGRATED solutions to the lethargy of the NZ economy.

Whilst Rod Oram correctly identifies that NZ is not part of the New Economy (NZ Herald 4.2.00. - page C 1) Ralph Norris (NZ Herald 4.2.00. - page C 2) does not give me the impression that he (or the Round Table) fully understand the micro economic linkages between fundamental facits of our economy.

To clearly make these linkages in my mind - I find it useful - to distinguish five economies in NZ. These are: the primary economy, the domestic economy, the import economy, the export economy and the new economy.

Unfortunately these five economies are not currently within the same "cycle" and in my opinion - when overviewed - are dysfunctional.

These five economies need to be co-ordinated through "harmonious" - micro economic policy, a sensitive Reserve Bank approach to macro economic policy and innovative competitive economic policy advanced through the Minister of Finance.

In this way the five NZ economies can be brought into one integrated cycle and shed their dysfunctional dis-equilibrium.

In my opinion, to achieve a new functional integration - of the NZ economy - there needs to be greater discussion and debate across the five economies by members of the five economies - so that a greater understanding of the micro economic policy linkages across all five economies - can be developed

For NZ to be internationally successful and competitive all five economies must FUNCTIONAL - this means in practice - that they must be innovative, profitable and robust - and not working at cross purposes - as at present.

The extent to which INTEGRATION is successful can be quickly confirmed by the Current Account Deficit/Surplus.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: