A Double-Dip Recession in the Land of the Long White Cloud
New Zealand has a special place in the history of monetary policy. Its never-surrender approach to inflation has come at a great cost.
In a world of its own.
Photographer: James D. Morgan/Getty Images
Give New Zealand a bit of credit. The nation's economy is small, but often punches well above its weight in monetary policy. First in the world to adopt a formal inflation target, the central bank doesn't do a lot of nuance. Officials also aren’t averse to standing on their own. That's just as well because they are pretty isolated at the moment.
While the US economy shows great resilience and chances of a global downturn recede, the Kiwis are in the midst of a rare double-dip recession. Recent reports have also revealed sluggish consumer spending, a pronounced slide in manufacturing, and bleak business confidence. The Reserve Bank of New Zealand itself describes the economy as “weak.”