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| Thread ID: 39416 | 2003-11-06 01:57:00 | OT: The rising Dollar... | csinclair83 (200) | Press F1 |
| Post ID | Timestamp | Content | User | ||
| 189553 | 2003-11-06 08:18:00 | Ok yea that helps a little. But if the NZ dollar is rising shouldn't you be able to buy more with that dollar than you could before? It should in theory make items in shops cheaper, so why don't the shops drop their prices or anything? | PoWa (203) | ||
| 189554 | 2003-11-06 08:23:00 | Wouldn't have a proper clue why, but I'd say because not many things are imported from the US... all that 'made in taiwan' and stuff would mean it's imported from Asian areas much more than Europe or America, wouldn't it? | agent (30) | ||
| 189555 | 2003-11-06 09:04:00 | Most international trade is done in US dollars. And most importers won't shuffle their prices around (up or down) too impulsively, especially when we expect the government to do something about the exchange rate any day now . Jay |
j.harper (2905) | ||
| 189556 | 2003-11-06 09:07:00 | Theoratically the government should decrease the interest rate to bring back down the exchange rate (perfect economy).... the growth rate in NZ seems to be slowing down (again due to the exchange rate) and the government really needs to do something about it... house buying is just going crazy FINE i admit its good for cheap computer parts but hey eventually gonna bite us all in the ass. I reckon the government made a mistake having such a huge surplus in the budget considering slow growth, but hey i'm not the government economist... - David |
DangerousDave (697) | ||
| 189557 | 2003-11-06 09:20:00 | We have a floating currency. Let it float I say. If it is going up compared to the US$ then either our economy is stronger or the US is weaker. Yes exporters will have to market their product in a more competitive way. OTOH Imports will cost us less. Just my opinion and I'm not an economist. |
Elephant (599) | ||
| 189558 | 2003-11-06 09:24:00 | > Ok yea that helps a little. But if the NZ dollar is > rising shouldn't you be able to buy more with that > dollar than you could before? It should in theory > make items in shops cheaper, so why don't the shops > drop their prices or anything? Ummmmmmmmmmmmmmmm - I think prices ARE going down. Have you been shopping lately PoWa???????????????????????????????????? eg: DVD players $114 Computers $1300 |
Baldy (26) | ||
| 189559 | 2003-11-06 09:41:00 | Well we can always go back to Import licensing can't we. Once upon a time if you didn't have the funds overseas you couldn't buy a new car. As consumers we have the answer in our own hands. Just buy stuff produced in NZ when you have a choice. It surprised me the other day when I was starving to death ( roughly ) and called into a service station and bought two pies. We have all seen Mrs Macs Famous Pies and I hadn't had one yet. Halfway through munching the second one I noticed the "Product of Australia" label and thought "Bugger" :-) There were "Big Ben" pies at the same outlet but the others were bigger and remember I had to have FOOD!! For all I know "Big Ben" pies come from the same country. $5.50 for two pies.!!! I can get 6 pies from Countdown for about $1.00 each. I know that it was the convenience and hunger that made me buy them. Yes.... Import what we don't produce. Export what we can. Buy local when you can. Read labels. Just my $5.50 worth :-) |
Elephant (599) | ||
| 189560 | 2003-11-06 10:06:00 | Nah those are just cheapo computers and dvd players Baldy. :) Shouldn't food from supermarkets etc go down in price too, or is it only stuff that would be imported from the USA? | PoWa (203) | ||
| 189561 | 2003-11-06 22:40:00 | Shouldn't food from supermarkets etc go > down in price too, or is it only stuff that would be > imported from the USA? Only the USA stuff. In fact this happens. Why do you think TVs, stereos, cameras, have dropped in price over the past 2 years? Partly it is the cost of technology reducing, but for us because all these are imported the main reason is the rise in strength of our $. Why don't cheaper imports make up for the exporters pain? Well if the exporter only spent his money on imported items that would work out. But he is likely to spend most of his money on local costs. Rent, wages, food, electricity,insurance, interest, tax - all of these are internal expenses. If he received $NZ83.30 instead of $NZ100 cos of a rise in the exchange rate the exporter has a problem cos the local expenses do not go down at all. Imagine your boss saying your wages were down 20% this month cos of the exchange rate. No way? Why not - that has just happened to him. I agree with Elephant. Buy NZ made when you can. Even if it costs a bit more. |
Winston001 (3612) | ||
| 189562 | 2003-11-07 00:15:00 | > Theoratically the government should decrease the > interest rate to bring back down the exchange rate > (perfect economy).... > > the growth rate in NZ seems to be slowing down (again > due to the exchange rate) and the government really > needs to do something about it... house buying is > just going crazy Decreasing the exchange rate would mean greater borrowing, which would lead to increased spending because it would now be relatively cheaper to borrow the money to buy something. I'm glad you brought the housing "boom" up because that is one reason why the interest rate isn't being changed at the moment. If it was decreased, people would buy yet more houses. If it was increased then overseas investors would put more money into NZ because they would get higher returns. By limiting government spending (think huge surplus), they decrease the money flow. If I paid attention in 7th form economics, that means that the price level will increase, which will help to curb spending. So decreasing government spending is probably a good way to go about it. |
segfault (655) | ||
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