tax cuts and borrowing don’t always fuel inflation – but Nicola Willis has to get the balance right
- Written by Dennis Wesselbaum, Associate Professor, Department of Economics, University of Otago
LazingBee/Getty ImagesOn the eve of the first budget from the National-ACT-New Zealand First coalition government, there is ongoing debate over whether borrowing while offering tax cuts could trigger a rise in inflation.
Finance minister Nicola Willis has confirmed the budget will introduce “meaningful but modest” tax relief. But what...
