Monday, October 8, 2012

Print More Money...Another Boost For Tourism?

The Tourism Association of New Zealand has a habit of backing most populist ideas that would allegedly give tourism businesses a boost. According to the TIA, imposing more Statutory Days upon small businesses would be a small price to pay in order to stimulate domestic tourism by unleashing struggling workers that are apparently unable to manage a break away from existing entitlements of the odd weekend, existing Statutory Days, minimum 4-weeks holiday & the occasional sneaky sick day.

So based upon this fuzzy logic, we are front footing with a prediction that the TIA will be backing The Greens latest fanciful policy ejaculation that calls for the Reserve Bank to print money that will unfortunately further devalue the dollars Kiwis have in their wallets.

However, one the the many "benefits" of printing money is tourism will receive instant gratification of increased overseas arrivals that will be attracted by a more favorable exchange rate...

Thanks to Whaleoil, John Clarke gives us a clear explaination of the economic concept of printing money (Quantitative Easing) as a means of stimulating the economy.

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