It is worth noting that this contained inflation picture comes after a period of very strong growth in the prices of domestic assets and international commodities. Both played a major part in the strong inflation pressures New Zealand experienced in the mid-2000s. How does this inflation performance compare with other countries?
Deficits are not always and everywhere a bad thing, notwithstanding the pejorative connation of the word deficit. 1 Cross-border capital flows, which are the mirror of current account positions, can convey large benefits.