Richard Harman writes at Politik about the hypothesis that our immigration policies have stunted growth.
Riddell’s fundamental argument is that New Zealand has failed over the past 25 years to enjoy the level of growth that it should have.
And he argues that is because the exchange rate has been too high and that we have not produced a whole range of profitable new export businesses.
Though he has plenty to say about the way the Reserve Bank goes about its day to day business it is his argument on the exchange rate that is likely to be his most controversial.
That’s because he believes the fundamental reason the exchange rate is too high is because of the upwards pressure placed on interest rates by what he argues is excessive immigration.
Of course any argument like that makes the proponent vulnerable to the charge that they are promoting New Zealand First and Winston Peters.
And that was exactly the reaction he got when he first presented his argument when he worked at Treasury.
“They said these are really interesting ideas.
“But — but — they sort of sound like Winston and we don’t know what to do with that!” Read more »