Australia/NZ currency union rejected

A CURRENCY union between Australia and New Zealand has been rejected by top economic think tanks in both countries, with Europe's woes with the euro weighing heavily on the proposal.

For decades a shared currency has been floated by economists as one way of reducing business costs and boosting trans-Tasman trade and investment. The ''Anzac'' was suggested as a name.

A joint discussion paper from the productivity commissions of Australia and NZ will dismiss the proposal today. It says that without political integration, the move would give each country less flexibility in managing its economy.

Monetary union would require interest rates to be the same in both countries, giving them less room to respond to local economic conditions. Currencies also tend to act as ''shock absorbers'' for economies, by falling in times of weakness, which helps to make exporters more competitive.

But the much smaller size of NZ's economy means it would probably be hitching itself to the stronger Aussie dollar.


Topics:  exchange rates

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Circa's new performance is a Peepshow

SHOW: Peepshow will premiere on the Northern Rivers.

The new production will have a Northern Rivers world premiere

Be the first to see controversial animated children's film

FURRY FRIENDS: Mopsy (Elizabeth Debicki), Flopsy (Margot Robbie), Benjamin, Bea (Rose Byrne), Peter Rabbit (James Corden) and Cottontail (Daisy Ridley) in Columbia Pictures' PETER RABBIT.

Advanced screening of Peter Rabbit in Lismore this weekend

Rosanna has designs on female taboo

Artist Rosanna Pimm uses 3500 porcelain tampons to created her large scale performance installation  Riots of Passage in The Quad  as part of The Lismore Women's Festival on International Women's Day. Laying down and de-constructing the mandala structure symbolises the impermanence of the menstrual cycle and an end to female inequality in the world.

Rosanna has designs on female taboo

Local Partners