Listener 12 May, 1979
Keywords: Macroeconomics & Money;
The terms of trade measure the value of our exports. In the 1950s and the early 1960s they were high, which meant that we were able to buy a lot of imports for each tonne of wool, meat or butterfat. It may well be that for those 18 years we experienced the longest period of high terms of trade in our entire history .As a result New Zealand had one of its most sustained periods of prosperity. Not the least of the achievements were moderate economic growth, low inflation and negligible unemployment.
