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The video discusses the impact of natural disasters on monetary policy, highlighting that such events are inflationary and monetary policy may not be the best tool to address them. It examines labor market conditions, noting a tentative easing of labor shortages, and the challenges facing the housing market, including significant price drops. The video contrasts monetary and fiscal policy, emphasizing fiscal policy's targeted effectiveness in disaster recovery. It also explores inflation expectations, external risks like the Ukraine conflict and China's reopening, and their implications for New Zealand's economy.

What is the primary challenge of using monetary policy after natural disasters?

• It can only affect the supply side.

• It is too slow and not targeted.

• It reduces inflation immediately.

• It directly injects money into affected areas.

What is the current state of New Zealand's labor market?

• Unemployment is at record highs.

• Job ads have increased significantly.

• Firms find labor easily available.

• Unemployment is at record lows.

How have house prices in New Zealand changed recently?

• They have increased by 22%.

• They have increased by 45% in three years.

• They have dropped by more than 15%.

• They have remained stable.

Why is fiscal policy preferred over monetary policy in disaster recovery?

• It is slower but more effective.

• It is less targeted than monetary policy.

• It reduces inflation more effectively.

• It can directly target affected areas.

What is a common refrain about monetary policy in the current context?

• It is the best way to target cost of living pressures.

• It is faster than fiscal policy.

• It is a precise tool for economic management.

• It is a blunt tool with limited effectiveness.

How does the conflict in Ukraine affect New Zealand's economy?

• It affects fertilizer prices and food prices.

• It directly impacts New Zealand's trade with Russia.

• It has no impact on New Zealand's economy.

• It improves New Zealand's export opportunities.

What is the significance of China's economic reopening for New Zealand?

• China is New Zealand's smallest export destination.

• China's reopening will decrease New Zealand's exports.

• China is New Zealand's biggest export destination.

• China's reopening has no impact on New Zealand.