New Zealand's economic crisis exacerbated by austerity measures, affecting IS, Phillips, and current account.

New Zealand's economic crisis is illustrated through three key concepts: the IS curve, which shows that lowering interest rates boosts output and employment, while raising them can cause recession; the Phillips Curve, indicating inflation rises in booms and falls in recessions, although this may not hold due to weakened labor power; and the current account, affected by exchange rates. Austerity measures exacerbate these issues, limiting economic growth and complicating inflation control.

October 15, 2024
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