The economy of New Zealand is a highly developed free-market economy. It is the 52nd-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 62nd-largest in the world when measured by purchasing power parity (PPP). New Zealand has one of the most globalised economies and depends greatly on international trade,mainly with China,Australia,the European Union,the United States,and Japan. New Zealand's 1983 Closer Economic Relations agreement with Australia means that the economy aligns closely with that of Australia.
The Australian dollar is the official currency and legal tender of Australia,including all of its external territories,and three independent sovereign Pacific Island states:Kiribati,Nauru,and Tuvalu. As of 2022,it is the sixth most-traded currency in the foreign exchange market and also the seventh most-held reserve currency in global reserves.
Rogernomics were the neoliberal economic reforms promoted by Roger Douglas,the Minister of Finance between 1984 and 1988 in the Fourth Labour Government of New Zealand. Rogernomics featured market-led restructuring and deregulation and the control of inflation through tight monetary policy,accompanied by a floating exchange-rate and reductions in the fiscal deficit.
The New Zealand dollar is the official currency and legal tender of New Zealand,the Cook Islands,Niue,the Ross Dependency,Tokelau,and a British territory,the Pitcairn Islands. Within New Zealand,it is almost always abbreviated with the dollar sign ($). The abbreviations "$NZ" or "NZ$" are used when necessary to distinguish it from other dollar-denominated currencies.
The 1997 Asian financial crisis was a period of financial crisis that gripped much of East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect,raising fears of a worldwide economic meltdown due to financial contagion. However,the recovery in 1998–1999 was rapid,and worries of a meltdown quickly subsided.
David Russell Lange was a New Zealand politician who served as the 32nd prime minister of New Zealand from 1984 to 1989.
In international economics,the balance of payments of a country is the difference between all money flowing into the country in a particular period of time and the outflow of money to the rest of the world. In other words,it is economic transactions between countries during a period of time. These financial transactions are made by individuals,firms and government bodies to compare receipts and payments arising out of trade of goods and services.
Sir Roger Owen Douglas is a retired New Zealand politician who served as a minister in two Labour governments. He became best known for his prominent role in New Zealand's radical economic restructuring in the 1980s,when the Fourth Labour Government's economic policy became known as "Rogernomics".
Spark New Zealand Limited is a New Zealand telecommunications and digital services company providing fixed-line telephone services,mobile phone services,broadband,and digital technology services including cloud,security,digital transformation,and managed services. Its customers range from consumers to small - medium business,government agencies and large enterprise clients. It was formerly known as Telecom New Zealand until it was rebranded to Spark in 2014. It has operated as a publicly traded company since 1990. Spark's mobile network reaches 98% of New Zealand,with over 2.5 million mobile connections and 704,000 broadband connections
Think Big was an interventionist state economic strategy of the Third National Government of New Zealand,promoted by the Prime Minister Robert Muldoon (1975–1984) and his National government in the early 1980s. The Think Big schemes saw the government borrow heavily overseas,running up a large external deficit,and using the funds for large-scale industrial projects. Petrochemical and energy related projects figured prominently,designed to utilise New Zealand's abundant natural gas to produce ammonia,urea fertiliser,methanol and petrol.
In macroeconomics and modern monetary policy,a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system,in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket. The opposite of devaluation,a change in the exchange rate making the domestic currency more expensive,is called a revaluation. A monetary authority maintains a fixed value of its currency by being ready to buy or sell foreign currency with the domestic currency at a stated rate;a devaluation is an indication that the monetary authority will buy and sell foreign currency at a lower rate.
Martin Stuart Feldstein was an American economist. He was the George F. Baker Professor of Economics at Harvard University and the president emeritus of the National Bureau of Economic Research (NBER). He served as president and chief executive officer of the NBER from 1978 to 2008. From 1982 to 1984,Feldstein served as chairman of the Council of Economic Advisers and as chief economic advisor to President Ronald Reagan. Feldstein was also a member of the Washington-based financial advisory body the Group of Thirty from 2003.
The Russian financial crisis began in Russia on 17 August 1998. It resulted in the Russian government and the Russian Central Bank devaluing the ruble and defaulting on its debt. The crisis had severe impacts on the economies of many neighboring countries.
Modern monetary theory or modern money theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires. According to MMT,governments do not need to worry about accumulating debt in a currency of which that government itself,or the central bank thereof,is the sole issuer,since any and all obligations can always be met by the creation of new money. MMT argues that the primary risk of excess increases in government debt,or money creation in other forms,is inflation. MMT argues that sustaining government expenditures at a higher level than tax revenues is necessary for sustained full employment. Spending past the point of full employment,or non-targeted discretionary "pump priming",is believed to be inflationary. According to MMT the only real constraints on government spending is the availability of physical resources. MMT also argues that inflation can be addressed by increasing taxes to reduce the spending capacity of the private sector.
The New Zealand constitutional crisis of 1984 arose following the 1984 general election,and was caused by a major currency crisis. The crisis led the incoming government to review New Zealand's constitutional structures,which resulted in the Constitution Act 1986.
Stanley Joseph Rodger was a New Zealand politician of the Labour Party. He was president of the Public Service Association between 1970 and 1973 and Member of Parliament for Dunedin North from 1978 to 1990.
The Zimbabwean dollar was the name of four official currencies of Zimbabwe from 1980 to 12 April 2009. During this time,it was subject to periods of extreme inflation,followed by a period of hyperinflation.
Sir Ronald Ramsay Trotter was one of New Zealand's pre-eminent business leaders. He was knighted for his service to business in 1985.
Currency war,also known as competitive devaluations,is a condition in international affairs where countries seek to gain a trade advantage over other countries by causing the exchange rate of their currency to fall in relation to other currencies. As the exchange rate of a country's currency falls,exports become more competitive in other countries,and imports into the country become more and more expensive. Both effects benefit the domestic industry,and thus employment,which receives a boost in demand from both domestic and foreign markets. However,the price increases for import goods are unpopular as they harm citizens' purchasing power;and when all countries adopt a similar strategy,it can lead to a general decline in international trade,harming all countries.
The Māori loan affair of 1986 and 1987 in New Zealand was an unauthorised attempt by the Department of Māori Affairs to raise money overseas for Māori development. The affair was first raised in Parliament on 16 December 1986 with a question from opposition National MP Winston Peters about loan negotiations;the revelations dumbfounded ministers;and the House adjourned on 18 December. Peters was reluctant to share all his information with the State Services Commission chairman Roderick Deane or Peters' National Party leader Jim Bolger,and Bolger then downplayed the affair. Peters was getting information from an informant in Koro Wētere's office and from Rotorua businessman Rocky Cribb. Peters was first advised of the affair by Edwin Perry an associate of Cribb and like Cribb a National Party member. The affair helped Peters' promotion to the frontbench after the 1987 election.
