Insights

To link the debate about the best market structure for the electricity sector to the question of executive pay makes one wonder how sincere the Greens really are about their proposals. Are they driven by the wish to develop and discuss good economic policy? Or is it only about scoring political points?

New Zealand should have a debate about its motorways. But by only talking about speed limits, we are having it back to front. Before discussing speed, we need to talk about the quality of our transport infrastructure.

Manufacturers and exporters have been complaining about the high Kiwi dollar for a long time. Opposition politicians are openly toying with the idea of changing the Reserve Bank’s mandate to manipulate the exchange rate downwards. The question is, if inflation targeting was abandoned in favour of managing the exchange rate, would it actually work?

To restrain yourself and not take yourself too seriously; to accept that one may be wrong and others right; to be tolerant of different opinions; and to meet in a spirit of equality and politeness – these are not religious demands but in fact the foundations of a free, civil society.

For countries whose official language is English, there may not be the immediate business imperative to learn other languages since world trade is dominated by English. Despite this, other English-speaking countries such as the United Kingdom and Australia are realising the benefits of language instruction and promoting second languages at school.

Just when many commentators thought the euro crisis was over, Italy’s political earthquake has put it back on the agenda. The problem is not so much that it is practically impossible to form a stable government with different majorities in the two houses of parliament. The real issue is that the anti-austerity forces in Italy have won a large majority.

Of course political observers love the spectacle and drama of elections campaigns. But all this excitement is not an end in itself. Its real purpose is to constitute both a parliament and a government that do their jobs well. And for this reason, fixed four-year terms would improve New Zealand’s democracy.

As the New Zealand dollar reached an all-time high against the British pound and keeps rising against the US dollar, the euro and other major currencies, New Zealand manufacturers are renewing their complaints about the damaging effects of our strong currency. However, currency movements usually produce losers and winners. Just as domestic exporters suffer from a rising kiwi dollar, domestic importers benefit from increased international purchasing power.