NZ Business Roundtable Perspectives No. 133 10/07

NZ Business Roundtable
Perspectives

No. 133 October 2007
Tax Cuts Can Help Fight Inflation
By Stephen Kirchner
24 October 2007
Unlike in previous elections, this year’s federal campaign is likely to include only cautious spending and tax-cut promises from the major parties. Both worry that less spending or more taxing would be inflationary, and prompt the Reserve Bank of Australia to increase interest rates. Yet there is little evidence that fiscal policy is an important influence on interest rates. In particular, tax cuts need not put upward pressure on interest rates.
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This article was first published in The Australian Financial Review on 10 October 2007
Articles in the Perspectives series plus a large library of books, studies, speeches, articles and DVDs on a wide range of public policy issues can be found at www.nzbr.org.nz

Related studies and commentary:

Inquiry into the Future Monetary Policy Framework
A submission made by the New Zealand Business Roundtable
July 2007
[Full Text]

Tax Cuts Deserve Debate
An article featured in The Otago Daily Times
15 July 2005
By Roger Kerr
[Full text]

Monetary Arrangements for New Zealand
A book published by the New Zealand Business Roundtable
May 2001
By Peter Hartley
[Full Text]

ENDS

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