DEFLATION
PROFESSOR'S OPINION AUCKLAND, Thursday. Declaring that the process of ecoromic deflation in New Zealand is still far from complete and that as a policy, it is fraught with extreme danger, Dr. II. Belshaw, Frofessor of Economics at Auckland University, in addressing the Economic Society urged that the exchange rate should be raised to not less than 30 per cent.. and maintained at -that level until overseas prices became more stable.; In emphasising the gap which still existed between export prices and internal prices, Dr. Belshaw said that on the basis of 1928 the continuance of deflation would require for the reductions .in award wages- of say 30 per cent., and in interest and rent of say ,20 por cent. Nevertheless, thehurden of fixed charges and taxes would still remain unduly heavy and a continued fall in internal prices would result in the persistence of low profits or no profits and heavy unemployment. "
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Rotorua Morning Post, Volume 2, Issue 253, 17 June 1932, Page 5
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153DEFLATION Rotorua Morning Post, Volume 2, Issue 253, 17 June 1932, Page 5
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