Bernard Hickey talks to Kiwibank chief economist Jarrod Kerr about Treasury’s five economic scenarios and how they frame potential Government responses to the Covid-19 crisis.
Bernard Hickey talks with Jarrod Kerr about the release on Tuesday of Treasury’s scenario analysis of how the economy will fare in the event of different lengths of Covid-19 lockdown and different Government responses. See more in Bernard’s article earlier on Tuesday.
They talk about the likelihoods of each scenario, the limitations of the scenarios, and how the Government could respond in each of the $20 billion and $40 billion spending responses.
Kerr talks about how such large amounts could be injected into the economy in a way that stimulates activity, including the potential for a GST cut from 15 percent to 10 percent, and income tax cuts, as well as infrastructure spending and revenue assistance for councils.
This is part of a daily ‘Bernard and Jarrod Zoom out for Lunch’ webinar series during the lockdown.
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