RECOVERY OF N.Z.
COMMENT BY ECONOMIST ADVICE TO GOVERNMENT GAP BETWEEN COSTS AND PRICES (By Telegraph—Press Association—Copyright) LONDON, June 24. The Economist, commenting on New Zealand’s recovery, suggests that the future budgetary policy should follow the Australian example of freely using Treasury bills, even if they are counter to New Zealand banking conservatism. ‘‘The gap between osts and prices is still considerable,” states the paper. While producers’ interne has fallen by 40 per cent, since 1930, internal costs have been reduced by only 20 per cent. The financial policy must therefore aim at a long period of regulated adjustment in order to take full advantage of the world markets, as further overseas borrowing and cuts in expenditure arc impossible. The narrowing of New Zealand’s export markets makes it vital that Britain should be induced to agree to reciprocal free trade. The value of the New Zealand market to Britain gives her strong bargaining power.”
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Bibliographic details
Wanganui Chronicle, Volume 77, Issue 148, 26 June 1934, Page 5
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154RECOVERY OF N.Z. Wanganui Chronicle, Volume 77, Issue 148, 26 June 1934, Page 5
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