Hosted by journalist Bernard Hickey, When the Facts Change is your essential weekly guide to the intersection of economics, business and politics in Aotearoa New Zealand. Presented by The Spinoff together with Kiwibank.
Visit kiwibank.co.nz to find out how Kiwibank are making Kiwi better off
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Hosted by journalist Bernard Hickey, When the Facts Change is your essential weekly guide to the intersection of economics, business and politics in Aotearoa New Zealand. Presented by The Spinoff together with Kiwibank.
Visit kiwibank.co.nz to find out how Kiwibank are making Kiwi better off
For 30 years, a little-known number in government circles has quietly stymied investment for future generations. Set by Treasury, the ‘discount rate’ was once set at 10%, and it meant future benefits and costs were heavily devalued, becoming worth almost nothing after six or seven years. In a nutshell, higher discount rates discourage long-term investment and incentivise short-term projects. Treasury has recently reduced the discount rate to 5%, but is that enough?
Bernard Hickey talks with Arthur Grimes, senior fellow at Motu Research and professor at Victoria University, about a big shift to new discount rates that could make big future projects much more viable.
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When the Facts Change
Hosted by journalist Bernard Hickey, When the Facts Change is your essential weekly guide to the intersection of economics, business and politics in Aotearoa New Zealand. Presented by The Spinoff together with Kiwibank.
Visit kiwibank.co.nz to find out how Kiwibank are making Kiwi better off
