In addition, the financial system is highly interconnected, meaning a failure in one part can quickly spread and endanger the wider system as a whole. Importantly, as a public good, the costs of financial instability can be felt far beyond the management, shareholders or customers of individual financial institutions.
For example, a hybrid index of economic and health measures (see figure 2) by economist David Skilling places New Zealand near the top-end of success in responding to the pandemic, with the caveat being the pandemic is not over yet.10 Figure 2 – Landfall Strategy COVID-19 Performance Index Index 100 90 80 70 60 50 40 30 20 10 0  Note: The index is an equally weighted index of (1) the average level of Covid restrictions stringency (over the full Covid period) taken from the Blavatnik School at Oxford; (2) the cumulative excess deaths per capita over the Covid period (a calculation from the Economist); and (3) cumulative GDP performance since Q1 2020 (compared to full year GDP in 2019).