With all the talk this week of how the cheap credit of a a dirt-cheap OCR announcement filtering through to the economy, as if some wand had been waved we should all celebrate, I couldn't help thinking of NZ economist JB Condliffe's sage observation on the New Zealander's enthusiasm for cheap money:
"Still belief persisted in the magic of credit to achieve all economic objectives. ... This pathetic and muddled belief in the power of credit to cure all economic ills is perennial in New Zealand ... "
He wrote that in 1959 in his book The Welfare State in New Zealand.
I doubt he'd be surprised today.
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