The Kiwis were really struggling as their regulated economy stagnated, the trigger being the UK’s entry into the (then) EEC and completely changed their approach to fiscal and monetary policy, including a free-floating currency. A reasonable summary of the background and program to become a market based economy dubbed
Rogernomics .
When I said that “the exchange rate insures that NZ dollars are worth 6% less than US dollars,” I meant (and I think this is obvious) that the real value of the NZ dollar is 6% less than the real value of the US dollar, not that one US dollar equals 0.96 NZ dollars.
Isn’t there anyone here who really knows about this stuff? I’m just kinda pissing in the wind here.