As this process of synthesis and partition is repeated, the risk structure becomes too complex and it is no longer an easy task to measure risk exposure.
Our capital stock and productivity will struggle to develop, dragging down potential GDP growth. New Zealand’s productivity growth has already been slow for some time.6 Breaking out of this will require greater investment in technology, education, and infrastructure. The Reserve Bank cannot directly make the investments the economy requires—this will have to come from the private sector and government.