AI chatbot Claude is a friendly chap. Knowledgeable and helpful, too. Read more
This month’s Nobel Prize in Economics arrives at an opportune moment. The award to Joel Mokyr, Philippe Aghion and Peter Howitt for having explained innovation-driven economic growth provides a salutary reminder about what drives prosperity. Read more
Every country has sacred cows: government programmes beyond criticism even when failing. Britain has the NHS, Australia has Medicare. Read more
There’s a very old saying that taxation is the science of plucking the chicken without making it squawk. The earliest form of the saying seems to go back to a 1766 letter from French economist Anne Robert Jacques Turgot to David Hume – though the exact origins are disputed. Read more
New Zealand has an awful lot of odd little cartels. At least if we define ‘cartels’ using an economist’s definition rather than a lawyer’s definition. Read more
ou do not have to own someone's house to help them, so why does Kāinga Ora's Reset Plan envisage continuing to own around 78,000 housing units? This week, The New Zealand Initiative published my report "Owning less to achieve more: Refocusing Kāinga Ora". Read more
My stat of the week is 38 percent. This is the provisional voter turnout at the 2025 local elections. Read more
I must confess, I am something of a literary philistine. So, when I heard this week that László Krasznahorkai had won the Nobel Prize for Literature, I had no idea who he was. Read more
You do not have to own someone's house to help them, so why does Kāinga Ora's Reset Plan envisage that it will continue to own around 78,000 housing units? After all, social housing can be owned by any combination of central and local government agencies, housing associations, community housing providers, iwi providers, not-for-profit charitable organisations and for-profit landlords. Read more
In early September, I warned that France’s politics could ignite Europe’s financial powder keg. The fuse, I suggested, might be lit when Prime Minister François Bayrou faced an inevitable confidence vote, which he would lose. Read more
This week, 20 economists published an open letter calling for increased government spending. They argue that spending now will reduce economic pain. Read more
Rugby, as readers of this newsletter will know, is a game played by men with funny-shaped balls. But as well as being a lot of fun to play and to watch, it turns out that the game has other uses. Read more
New Zealand’s fastest-growing sector isn’t tourism, dairy, or technology. It’s outrage. Read more
Most New Zealanders would struggle to explain what bank capital requirements are, let alone why they matter. Yet the Reserve Bank’s controversial 2019 decision to nearly double these requirements affects every mortgage holder and business borrower in the country. Read more
“We have no money, so we shall have to think.” That line is ascribed to New Zealand physicist Ernest Rutherford before he cracked the atom. The country’s current Prime Minister, Christopher Luxon and his Finance Minister Nicola Willis face a rather different conundrum, albeit under the same constraint: How do you deliver modern infrastructure when Treasury’s 2025 long-term fiscal statement projects government debt reaching 200 per cent of GDP by 2065? Read more