But New Zealand’s own experience suggests that it is in fact quite difficult to make such taxes work effectively, since there are lots of ways in which foreign investors, working in conjunction with locals, can find ways around that tax.
While on the downside, the spread of virus mutations continues to be a source of risk, on the upside, brighter prospects for global demand and a faster-than-anticipated increase in consumer spending could result in an even stronger recovery. Turning to price developments, euro area annual inflation has picked up over recent months, largely owing to temporary factors, including strong increases in energy price inflation.