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

  • Written by: Geoff Bertram, Visiting Scholar, School of History, Philosophy, Political Science and International Relations, Te Herenga Waka — Victoria University of Wellington
Austerity and recession: 3 simple graphs that explain New Zealand’s economic crisisGetty Images

Economists working on macroeconomic policy – things like taxes and spending, interest rates and border controls on flows of trade and money – often refer to a set of key relationships governments can influence. In the textbooks, each of those relationships is drawn as a curve in a graph.

First is the IS...

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