The Kiwi dollar is sitting above US 73 cents this afternoon so we remind people that the fundamentals argue in favour of a firm NZD. Note that the ten year average NZD/USD exchange rate is 74.3 cents.
We take a look at some things people talk about a lot but about which they might not have reasonable views – the currency, Auckland house prices, regional population growth, inflation, and interest rates. We also look at some of the areas in which we economists are just guessing these days because economic models cannot yet capture vast changes in behaviour since the GFC. Many thanks to those who completed our quarterly Confidence Survey. The results will be released next week.