Fiscal pros and cons of baby boomers

Jenny Ruth
Fri, 01 Nov 2019

Baby boomers are usually considered a huge fiscal problem as they retire and start drawing ever more superannuation and health spending just as the working-age population available to support them dwindles. For former Bank of New Zealand chief economist Tony Alexander, though, baby boomers may be the answer to the Reserve Bank's prayers in the next economic downturn. "Everybody at the moment is thinking when the next downturn comes along, monetary policy will be worthless, and I agree with that," Alexander says. The RBNZ has cut its of...
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