Quantitative Easing (QE)? Why? No thanks Russel.
Russel Norman is promoting QE in New Zealand as a way to improve our economy. I am not sure why, as it is a radicle strategy with some serious risks:
1. Wikipedia: A nice simple summary.
2. Washington Post: QE3: What is quantitative easing? And will it help the economy?
It is used when things are bad. Really bad like in 2008. We can do a lot better but we are doing ok (lets call it a B-). We should be positive but focusing on positive solutions for the next 50 years.
The debate seems to have end in the same place like a broken record; the exchange rate and brain drain to Australia Neither of these can we control. Our exchange rate goes up and down. So, manage the risk and be competitive. NZ and Aussie – people will always be going backward and forth. Our brains go everywhere. Accept it and move on.
The debate should focus on how we can create businesses in the next 10 to 15 years that are globally competitive 40 years out; sustainably and without help from a manipulated exchange rate and/or radicle and risky economic policy driven by politicians. This process will take 10 years.