" Not High Price For Stability"
(New Zealand Press Association) WELLINGTON, March 15. New Zealand could not expect an early rise in export prices to save the necessity of reducing internal spending, said the director of the Institute of Economic Research (Mr J. W. Rowe) today.
Speaking to the Wellington Church of England Lunch Club, be said that further price falls in some of our exports could not be ruled out. New Zealand’s external accounts could not be balanced simply by more stringent import licensing without creating severe inflationary pressures within the country, he said. Mr Rowe said the short-run problem facing New Zealand was how to convert a balance-of-payments deficit of more than £lOO million a year to one of only about £3O million without causing serious unemployment. The gap to be bridged was the equivalent of more than £1 million a week, even allowing for continued overseas borrowing of some £3O million a year, mainly in the form of private foreign investment
“The net requirement is for New Zealand to forego at least one year’s increase in real income, surely not a high
price to pay for a sounder based economy,” said Mr Rowe.
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Bibliographic details
Press, Volume CVI, Issue 31320, 16 March 1967, Page 18
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195"Not High Price For Stability" Press, Volume CVI, Issue 31320, 16 March 1967, Page 18
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