The Reserve Bank has conceded its policy settings are to blame for rampant inflation, but it remains blinkered about being a major cause of the house-price boom.
The key drivers of inflation are on the supply side. Therefore, “demand management”, or a traditional Keynesian policy response, is not appropriate in such circumstances.
If the process can be commercialised, it could allow reuse of existing turbine-driven power stations that currently run on gas or coal, using carbon-free hydrogen as feedstock.
NZ may avoid a recession, according to the Reserve Bank's latest forecasts, but it will be a near-run thing and future growth looks lower than it was pre-covid.
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articles by Pattrick