Economic outlook cloudy, says bank

Press, Volume CXIV, Issue 33626, 30 August 1974, Page 12

Economic outlook cloudy, says bank

The international economic outlook is clouded by a slowing dowm in economic] [ activity in the major indus- j i trial nations, accentuated by[ the problems arising from a; sharp increase in oil prices, the directors of the Bank of! New Zealand say. Domestically,' the major; i problems are inflation and I the static level of livestock] I numbers. A rapid increase inj livestock numbers is consid-l ered essential to future! growth, but sharply rising costs must also be contained. "Inflation is basically a derivative of excessive spending, and to the extent that it stems from internal forces, it could be resolved!

by adequate disciplines on; .public and private ex-i jpenditure. Although a heavy; iburden falls on the Govern-] jment in finding and imple-; menting counter-measures, , ultimate responsibility for ; control of inflation lies with [the community itself, which ;is often far from receptive to policies that are effective I in the long term, but painful |in the shorter term,” they Isay. “The w’hole problem remains perhaps the most intractable of our time and its solution will require a much higher level of community understanding of inflation and its adverse conI sequences.”