A new report from the New Zealand Institute of Economic Research (NZIER) highlights the unprecedented fiscal challenges that New Zealand politicians will face in coming decades. NZIER recommends that tough decisions around taxes and government spending need to be taken now, and stuck to, in...

New Zealand is ageing. The number of old people will increase three-fold and will soon comprise a very large segment of society. Ageing will shrink the labour supply relative to the size of the population and the existing supply of capital. That has implications for wages and interest rates....