Joint statement from the NZ Initiative and NZ Association of Economists

Wellington (Thursday, 10 February 2022) The inaugural New Zealand Economics Experts Survey finds remarkable consensus among the country’s top economists on critical policy issues.

The New Zealand Association of Economists, in conjunction with the New Zealand Initiative, invited Distinguished Fellows, life members, and former Presidents of the New Zealand Association of Economists, and recipients of the NZIER ‘Economist of the Year’ award, to serve as an expert panel.

The expert panel was asked whether they agree or disagree with policy statements on rent control, on the economic consequences of immigration, and on ‘Modern Monetary Theory’.

The survey revealed strong expert consensus.

Rent Control
Over 80% of our expert panel said that rent controls have not improved the amount and quality of affordable rental housing in places with rent control. Less than 6% believed that rent controls have had a positive impact.

Immigration
Almost 90% of expert economists agreed or strongly agreed that the average Kiwi would be better off if more highly educated foreign workers were allowed to migrate to New Zealand each year. No surveyed panellist disagreed.

‘Modern Monetary Theory’
No expert economist surveyed agreed with the core proposition of ‘Modern Monetary Theory’ that countries able to borrow in their own currency can finance as much real government spending as they want by creating money.

New Zealand Association of Economists Vice-President Dennis Wesselbaum said, “The popular perception of academic economists is that we disagree with each other. In reality, there is strong agreement among economists on many core issues.”

Dr Wesselbaum continued, “Public policy can only be improved by having a better sense of the expert consensus on core economic questions. We will keep asking our expert panel about the issues that matter, to find out where we agree and where we do not.”

Dr Eric Crampton, Chief Economist at the New Zealand Initiative, added, “Since leaving academia in 2014, I have observed a widening divide between Wellington’s policy community and the expert economic consensus. The survey will help ground policy discussion, so policymakers, media, and the public understand what the experts think about economic policy.”

Results of the New Zealand Economics Experts Survey are available here.

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