Bubbles, FDI, winners and losers

By Matt Nolan 19/03/2013


I’m so sorry I am still away – currently a bit caught up!  I will be back posting properly and answering comments in a few days.

For now, here is the latest article I’ve popped up on Rates Blog.

In it I discuss what it means for there to be a “bubble” due to foriegn investment, and I mull over long-term foriegn investment.  I am relatively terse in the article, this probably stems from my lack of sleep and the fact I’m busy ;)

I conclude:

Foreign investment and the associated capital flows have been a net positive for New Zealand in the past.

Let’s not forget this as we try to figure out what policy to set in a post-Global Financial Crisis world.

I have no doubt that this article will be unpopular with close to everyone.  That is fine.

Editor’s note: Nolan’s piece up at Rates Blog is an excellent primer on the standard econ take on these things. It’s well worth reading if you’ve worried about effects of foreign investment in NZ property. – EC