Placing this article does not mean I endorse labour. But I do think that the fiscal conservancy of labor has placed this country relatively better placed to weather the coming storm than other countries like the US and Australia.
Hon Dr Michael Cullen
Minister of Finance
24 January 2008 Op-ed
New Zealand well-prepared for global slowdown
The news on the global economy at the start of 2008 is cloudy at best.
The subprime mortgage crisis in the United States and the subsequent credit crunch have made the possibility of an American recession very real. Global share markets have taken a considerable hit, with the NZX no exception.
To complicate matters, this period of weakening has so far been accompanied by persistent inflation driven largely by global rises in food and oil prices (up 50 and 80 per cent respectively on a year ago). The inflation rate in the U.S. has passed four per cent; in China it has passed six.