Since Bernard Hickey et al persisting in promoting a healthy tonic of inflationism to “fix” every problem from the high NZ dollar to excessive lint in your laundry, here’s some common sense as a response:
What difference does it make to the importer of our goods that
the [NZ] dollar is now 5 percent cheaper, if domestic inflation
has made the price the importer pays in dollars 5 percent
higher? The effect is nil.
- David Howden, ‘The Blessings of a Strong Currency’