At the beginning of 2020 empty supermarket shelves were a common sight as consumers rushed to stock up on goods they thought might run out. Suppliers struggled to keep up with soaring COVID-induced demand. Governments reacted by pouring billions (or trillions) of dollars into their economies to avoid an economic…

After three decades of low inflation, most people could be forgiven for dismissing stagflation as an historical anomaly from the 1970s. However, fears are rising everywhere that this unwelcome prospect could soon be back. Stagflation occurs when there is high inflation, low or negative real economic growth and increasing unemployment…

Before the Monetary Policy Review announcement today there was consensus amongst commentators that the Official Cash Rate was “sure to rise” with only the quantum — 25 or 50 basis points being debated. Those urging a more aggressive hike were concerned the Reserve Bank was behind the inflation curve with…

Two years after shutting its borders, New Zealand has slowly begun the process of opening up to skilled migrants and international students. This comes as competition intensifies for skilled migrant labour in an extremely tight post-COVID global jobs market. Net migration in New Zealand dropped to negative in 2021 for…

The latest regional GDP figures (for the year to March 2021) released by Stats NZ today reflect the full initial impact of COVID-19 on regional economies in New Zealand. While economic growth was better than expected at the beginning of the pandemic, regions were impacted very differently by the restrictions…

Economic activity in New Zealand bounced back strongly in the December quarter of 2021 after contracting 3.6% in the September quarter. This gave an annual GDP figure of 5.6% compared to the year ended December 2020. Retail and hospitality spending was high as easing COVID-19 restrictions encouraged people back into…

First, the pandemic, then widespread protests and now the war in Ukraine. But are these things all linked? It turns out that history is full of examples of epidemics leading to a prolonged period of social unrest and even war. Roberto Censolo and Massimo Morelli writing in the journal Peace…

Inflation in many developed countries has risen to levels not seen in several decades. With it has come calls for central banks to aggressively tighten monetary policy. In New Zealand, the Reserve Bank hiked interest rates in both October and November — with predictions of up to seven further rises…

New research from McKinsey Global Institute suggests that companies and countries that invest more heavily in intangible assets can unlock significantly higher levels of growth and productivity. Often misunderstood and underestimated, intangible assets are not fully accounted for in national accounts or company balance sheets. Companies that invest the most…