Analysis: Austerity and recession: 3 simple graphs that explain New Zealand’s economic crisis

‍Right now in New Zealand, the IS curve is remorselessly shifting left as the economy plunges into a deeper recession exacerbated by government austerity – an ideologically driven quest for instant fiscal surpluses, low public debt and a shrinking public sector relative to GDP.



Austerity and recession: 3 simple graphs that explain New Zealand’s economic crisis

Despite interest rates coming down, New Zealand’s economy is being pushed further into recession by government austerity measures. Basic macro-economic analysis shows why.

theconversation.com