Not only would there be significant administrative problems in ensuring compliance with such measures but the longer-term costs of undermining investor confidence in New Zealand’s commitment to free and open capital markets would weigh heavily against any possible shorter-term adjustment gains. Alas, none of the possible policy changes to encourage private sector saving - or reduce private sector borrowing - is politically easy.
But then living beyond our means carries risks as well. I myself do not think that these risks are terribly large at present, but the longer we continue living beyond our means, the greater those risks become. New Zealand is relatively prosperous, is well-endowed with educated people, and has natural resources which many others would give their eye teeth for.