Reports & Media

Those who read the business pages may have come across the term quantitative easing (QE), an apparently magical potent for reviving debt-ridden economies; almost like a shot of adrenaline in the arm of a dying patient. Prior to QE, the orthodox medicine for monetary authorities to use to stimulate the economy was to lower interest rates on some form of official debt, such as the interest rate the central bank pays on overnight deposits, and/or increase liquidity in the banking system by buying back government term debt. Read more

Next year, Lithuania will join the eurozone as its 19th member. The direct impact of Lithuania’s accession will be negligible. Read more

As the election gets closer, there is no doubt that immigration remains a potent campaign issue. Few other topics elicit such an emotional response as the questions of who should come to New Zealand or, indeed, how many should come. Read more

Last week Minister for the Environment Amy Adams piled into the Auckland Council over the Unitary Plan, saying the rule set was unlikely to come close to delivering the 300,000 plus houses the city needs over the next 30 years. The minister noted that the plan imposed even more red tape on the already regulation-choked sector, and if anything, was likely to worsen housing affordability in Auckland. Read more

Just a couple of months after the visit of the Duke and the Duchess of Cambridge, what do we still remember of their tour? With hindsight, what are the lasting effects, what are the enduring messages, what are the traces they left behind? Read more

It may be an uncomfortable truth, but there are some of us who enjoy rights and privileges above others, simply by virtue of being born. Not by talent, hard work, or any other factor reflecting merit, these people enjoy a privileged status in New Zealand. Read more

Recently my partner and I sat down to watch the Lego movie; a thoroughly entertaining laugh-a-minute watch, typical of the style of today’s animated films that somehow manage to pitch the tone and humour at both adults and children alike. For my partner, who grew up with Lego and can make incredible creations with a thousand tiny colourful pieces (biased as I am) it was a journey of reminiscence. Read more

From an engineering perspective at least, a good case could be made to use silver for all electric wiring. Silver just makes more sense than, say, copper, steel or aluminium. Read more

When the European Central Bank announced its new policy measures last week, most of the commentary focused on the introduction of negative interest rates. From now on, commercial banks depositing funds with the ECB will have to pay a penalty for doing so. Read more

Economist Edward Glaeser, ranked as one of the profession's top 50 practitioners, summed-up 40 years of transport economics at Harvard University in four words when he was visiting Wellington last year: "Bus good, train bad." Glaeser's argument is centred on the risks of bus versus rail. Rail is capital and land intensive as you need to buy the land at market prices in order to put a track on it. Read more

This year’s global publishing sensation has been Capital in the Twenty-First Century, a tome on the alleged rise of inequality in developed countries. Written by French economist Thomas Piketty, it argues that over long periods of time, capitalist societies had become more polarised. Read more

Since the publication of The Spirit Level in 2009, and its ‘devastating critique’, The Spirit Level Delusion, in 2010, debates in the media and among politicians have been gripped by wealth inequality fever. The latest instalment is French economist Thomas Piketty’s Capital in the Twenty-First Century – a book which is at the centre of its own maelstrom over the accuracy of its analysis. Read more

At a recent Local Government New Zealand (LGNZ) event on housing affordability, the most telling moment came when economist Arthur Grimes said: “You can have big cheap cities, or small expensive cities, but just don’t say you can have small and cheap.” This statement seemed to come as a surprise to some, particularly Auckland Deputy Mayor Penny Hulse, who appeared to strongly disagree with Grimes’s position. Her reaction is understandable given that the Auckland Plan aims to deliver affordable housing by increasing the population density of the city. Read more

‘Opportunity cost’ is one of the most fundamental concepts in economics. When choices have to be made, the opportunity cost of the preferred choice is measured by the net benefits that could have been secured by choosing the best of the rejected alternatives. Read more