Pages

Showing posts with label Perpetual bonds. Show all posts
Showing posts with label Perpetual bonds. Show all posts

Friday, May 1, 2020

Michael Coote: On the Money - Can perpetual bonds avert COVID-19 tax increases in New Zealand?


The 52nd New Zealand Parliament, which opened on 7 November 2017, finds its terminal countdown months in 2020 blighted by the COVID-19 pandemic.  This Parliament is finally extinct as of Saturday 19 September 2020, the date nominated by the prime minister for a general election.  

The Ardern tripartite coalition government’s Great Lockdown emergency measures are causing huge and mounting national compensatory expenditure blowouts that will have to be funded somehow.  In the short run ramped up national debt and expedient money printing will fill the breach, but afterwards the resultant liabilities must be addressed.