The new governor of the Reserve Bank of New Zealand, Graeme Wheeler, just signed a slightly revised policy target agreement with a greater focus on financial stability, but for some this is not going far enough. A curious coalition of exporters, newspaper commentators, Labour, the Green Party, and New Zealand First wants the RBNZ to relinquish its traditional focus on inflation. Read more

After three years of the euro crisis, it is surprising how announcements still impress markets. The approval of the European Stability Mechanism by the German constitutional court and the plans of the European Central Bank to purchase unlimited quantities of government debt were enough to calm the markets and reduce yields on euro periphery debt. Read more

When Germany’s Constitutional Court cleared the path for the European Stability Mechanism and the Fiscal Compact, markets and governments joined in a collective sigh of relief. With the last legal hurdle cleared, the €700 billion fund to stabilise Europe’s monetary union, rescue over-indebted governments and struggling banks could be established and the euro saved. Read more

For the past two weeks, I have been attending conferences in Europe. Following the general meeting of the Mont Pelerin Society in Prague, I spoke at the European Resource Bank in Brussels. Read more

Visitors to the EU quarter in Brussels are currently greeted by a giant poster on the faade of the Berlaymont building, the EU’s head office. Proclaiming more economic and political union for the EU, it stands in marked contrast to the constant signs of disunion and conflict on display across Europe. Read more

An economist ponders the deep questions. Being an economist is tough. Read more

I am in Prague attending the general meeting of the Mont Pelerin Society, a network of distinguished liberal academics and intellectuals. One of the best speeches at the conference, however, was delivered by a businessman with no academic affiliation – and contained an implicit warning to countries like New Zealand. Read more

Founded in 1947 by distinguished economists such as Friedrich Hayek, Milton Friedman and Ludwig von Mises, the Mont Pelerin Society has long been a forum for critics of big government, defenders of the free market and believers in individual liberty. As the society’s general meeting in currently being held in Prague (hosted by Vaclav Klaus, the fiercely euro sceptical Czech president), it was clear that the euro crisis would be a dominant theme during the week-long conference. Read more

Last week, I attended an annual public policy conference organised by the Australian think tank The Centre for Independent Studies on topics that ranged from foreign affairs to global economics. However, one of the sessions – traditionally reserved for the latest developments in science and engineering – was most humbling, particularly for the economists attending. Read more

Have you ever heard of Alexander Dobrindt? He must be a member of Superheroes Anonymous because the provincial politician has just taken on the "most powerful woman in the world”, Angela Merkel. Read more

Population growth is always an issue of intense debate, bouncing between a nation’s acceptance (and need) for migrants and an anti-foreigner sentiment. New Zealand and Australia are both typical and similar in this regard – both have relatively low populations for their size. Read more

After three years of the euro crisis, and despite numerous summits, various acronymed bailouts, and countless solemn pledges to save Europe’s common currency, we are nowhere closer to a solution than at the outset. The euro’s troubles have every chance of joining poverty in Sub-Saharan Africa, violence in the Middle East and North Korea’s nuclear program as a standard feature of the world in which we live: unpleasant, dangerous and yet seemingly unalterable. Read more

Economics students generally learn how to deal with recessions in their first semester. To cushion the economy in a downturn and speed up the recovery, students are taught to cut interest rates and provide fiscal stimulus. Read more

The most remarkable feature of the global financial crisis is its sheer duration. For five years now, developed economies have been in trouble – much longer than ‘ordinary’ recessions usually last. Read more

Few things in politics look more certain than a change of government after the next Australian election in 2013. The Gillard Labor government is polling abysmally and plagued by constant leadership quarrels. Read more