Forum Archive Index - October 2000

[Derek <dkw@paradise.net.nz>]

The problem is Hugh that we no longer live in isolation, with most
qualified people being able to earn 3-5 times their salary overseas there
is pressure for useful citizens to leave NZ, especially if they have
student loans.  I believe this is fundamental to the argument because it
seems to me that most economic models do not take this into account.

With regards to your Japan example, most Japanese would never have dreamt
of leaving Japan in those days, even if they could have.  

Motorola recently rejected setting up shop here citing one of the reasons
as a lack of suitably qualified people to employ. Therefore it seems that
the brain-drain is a vicious cycle and just keeping the dollar low won't
necessarily fix it. Other meausres are needed. 

Derek



At 06:25 AM 07/10/00 +1300, you wrote:
>Don't be totally ridiculous RIL, I presume this is just
>another stir.
>How else do you think the Japanese had such a massive
>continuous export led boom since WW2 up to a few years
>ago other than by manipulating the yen as low as they
>could for as long as they could.
>Except for overseas trippers and importers a low NZ
>dollar is the best thing that could happen to NZ. It stimulates
>NZ exports, chokes off imports, raises employment and 
>growth, encourages inwards tourism, corrects the balance of payments
>deficit. 
>Just because the media is abysmally uneducated in
>economics doesn't excuse investors from not being
>more switched on.
>Apart from a couple of instances of timing the major criticism
>of Brash is that he has gambled everything on crushing
>inflationary expectations and the inflationary climate and cost plus
>mentality at the expense of a high NZ dollar and NZ's balance of payments.
>Anyway, I suppose I can console myself that he won't resign 
>just because RIL has jumped the wrong way let alone Cullen jumping
>the wrong way.
>
>cheers,
>Hugh 
>
>----------
>> From: RIL <ril99_99@yahoo.co.uk>
>> To: sharechat@sharechat.co.nz
>> Subject: [sharechat] Brash Must Go!
>> Date: Saturday, 7 October 2000 2:06
>> 
>> Have been to NZ Herald site and can not believe what I
>> read.
>> 
>> Brash is saying a low dollar is good. I can not
>> believe a central banker can be that stupid. He should
>> be fired immediately. Or central banking control
>> should be handed to Canberra.
>> 
>> 
>> 
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