Tony Alexander

Economic Commentaries

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Sporadic 13 July 8 2015

Wednesday July 8th 2015

Failure’s Lessons
Listening to visiting ex-PM Helen Clark speak in Auckland last week I was struck at how her final comments regarding factors holding NZ back matched those summarised in my “What we Lack” series of papers put together back in early-2011. Fear of failure is one factor holding us back, but a new policy initiative from China shows we are not alone in that space. I take a look at issues surrounding this plus summarise developments since Sporadic 12 relevant to the likely SME operating environment – the upshot being things are getting worse but that can actually help many companies because it means lower interest rates, a lower exchange rate, and continued high migration flows. See the housing implications from that? Greece is mainly relevant to Europe and the stance of talks may now be shifting from negotiating a bailout to making sure Greece pays as high a price as possible for abandoning the Europe project, thus discouraging other recalcitrants. China’s slowing growth is more relevant to us so keep an eye on that.