Forum Archive Index - September 2001

["Jeremy" <jeremy@electrosilk.net>]

> Its the reason why NZ has improved from a vast deficit in trade and in its
balance
> of payments on current account to its current position of near
equilibrium - the
> drop in the NZ dollar against our main trading partners.
> You won't get a single advanced country economist to agree with you -
maybe some
> real maverick left winger like Wolfgang Rosenberg.
> cheers,

Perhaps you should share your obviously great economic knowledge with Alan
Greenspan and suggest an immediate drop in the USD ?  It is clear from what
you say that the constantly rising USD is very bad news for them.

I think you will find that 'successful' countries add value to whatever they
do and 'unsuccessful' countries sit on their bums and watch the cockies
drive into town in their new Mercs.

Balance of payments indicate relative productivity of a nation.  NZ has a
very poor record in this area and masks it by dropping the dollar.  In
reality there is no net increase in production (there is no capacity for one
thing)  All that happens is the returns on production lessen in real terms
and are distributed more unevenly between primary producers and the rest.

Stimulating demand for goods and actually adding value are good ways to
improve the balance of payments and get a healthily rising dollar.

I can't for the life of me see why selling more goods at a higher price in
real terms isn't good for you.

Jeremy


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