Offsetting Behaviour
Yesterday the New Zealand Budget was released and described as “surprisingly frilly” for a no-frills Budget. As a result, is it inflationary?
My answer is “no idea” – I just wanted to use the same title as the Australian Budget post . You yell inflation at me and I say “monetary policy offset through higher interest rates” – and the monetary and fiscal authorities can argue about that. New Zealand based economists can describe that for us.
Instead I’m going to have a think about a couple of the policies: game subsidies and the higher top tax rate.
Offsetting Behaviour