One overarching theme for the domestic economy is the extent to which households, firms, and even the government want to keep reducing their respective debt position, and how much they are able to do so. 1.
New Zealanders save but don’t spend  One possibility we could confront during 2011 is that the cautious household reaction we saw over 2010 turns out to be a structural change in behaviours rather than a cyclical response to a marked recession. House prices could be forced to drop much further to reach true economic values.