The fiscal stimulus of almost $10b over four years will result in an extra 10,000 jobs in the short run, but it will reduce future consumption by $160 per person per year. We can spend now, but we have to pay for it eventually. The Government faces a real juggling act in its forthcoming Budget...

Unlike many countries affected by the global financial crisis, New Zealand did not announce a formal fiscal stimulus package. However, via a series of policy announcements beginning in October 2008, by March 2009 the government budget balance had moved towards deficit by 1.6% of 2011 GDP. We...

In this report we use our new dynamic computable general equilibrium model to analyse the impact of the personal tax cuts, cuts to small business taxes, and infrastructure spending that have been announced since late last year. We have assumed in this paper that the Government will need to raise...