Weekly jobs data is out. The week 19 bump from 2024 and 2025 returns. But, looks like we are going to carry on tracking the 2025 line. Standstill once we allow for population change. Graph 2 shows annual change in nominal terms (some hope there?) [1/2]
Now, what happens if Govt gives millions of dollars to public servants (/sarc) and they buy flash cars and go on offshore holidays? Well, the money that Govt has created ends up in the accounts of offshore investors (who typically use it to buy NZ financial assets like bonds). [2/n]
Trouble is we can't tax folks offshore once they are all cashed up on NZD. So, we end up having to create more NZDs domestically to pay the dividends (by going into private / public debt). This is why our balance with the rest of the world is important. It's a drain on demand and $. [Ends]