Brian Easton

Listener 28 February, 1998.

Keywords: Macroeconomics & Money;

While there is a widespread expectation that there will be a snap election, the political arithmetic does not stack up. There is a solid majority of parliamentarians who would suffer personally from an early election, losing there seats, there perks and their power. Even so it is possible that the political scene could change to the point where a majority might think they had a chance if an election was called early.

Microeconomic Reform and Productivity Growth: Workshop Proceedings, proceedings of a conference “Microeconomic Reform and Productivity Growth”: 26-27 February 1998. (Productivity Commission and ANU, 1998) p.155-181.

Keywords: Growth & Innovation; Macroeconomics & Money; Political Economy & History;

Prologue

This being the first occasion which I have visited the Australian National University since the death of Professor Fred Gruen, may I briefly pay him a tribute. When we first met, Fred was suspicious of my approach, thinking I was anti-market. Over some long discussions he came to recognize I have a deep Marshallian respect for the market, even though we might not always agree on the details of policy. I would have appreciated a continuation of our intermittent dialogue with his response to this paper. It would have been thoughtful and shrewd. I would have responded in my revision, each of us shifting our position in the light of analysis and facts. I am sorry he is not here, except in spirit.

Introduction

Economic reform in New Zealand has been unusually comprehensive and thorough. For the scientist it provides a test of the theory which underpinned the reforms. The overt theory was essentially that which is known in Australia as “economic rationalism”, the consistent application of modern neo-classical market theory. At the practical microeconomic policy level this has been the withdrawal of government interventions which preferred one firm, industry, or sector (relative to others), in favour of market regulation of economic activity. Thus import licences have been abandoned, tariff levels steadily reduced, subsidies and tax incentives withdrawn, the tax regime made more uniform with exemptions barriers to entry eradicated, corporatization and privatisation of government trading activities, and greater reliance on competition law.¹ There remain some (now much lower) tariffs, a few special taxes, occasional interventions, and so on. Nevertheless the extent of the microeconomic reforms is such to that they become a test of the theory which underpins them.

The Economics of Tobacco control: Towards an Optimal Mix edited by I. Abedian, R. van der Merwe, Nick Wilkins, P. Jha ( Applied Fiscal Research: University of Captetown, 1998), the proceedings of a conference of the Economics of Control Project, School of Economics, the University of Cape Town, 18-20 February 1998, Cape Town.

Keywords Health.

Introduction: A Brief History of Tobacco in New Zealand (1)

Tobacco was introduced in New Zealand by the Europeans about 200 years ago. Smoking became very popular with the Maori: surgeon Henry Weekes wrote in the early 1840s that it was “universal among New Zealanders [the Maori] of both sexes.” (Rutherford & Skinner 1940) It was also used as a currency and a commodity of exchange in the middle of the nineteenth century. By 1860 attempts were made to grow tobacco leaf, although this was not a successful industry until the 1930s. Cigars were being manufactured by 1884.

Listener 14 February, 1998.

Keywords: Growth & Innovation; Macroeconomics & Money;

This column gets written about a month before it is first read. So there is a discipline to avoid instant comment which will prove facile a few weeks later. But the lead time also limits commenting on a rapidly unfolding scenario, as is occurring in East Asia. I have not been one to assume that the current bailout of this or that country by this or that institution will be the last, nor that the bailout will resolve quickly some underlying problem.