Costs of inflation in Australia and New Zealand.

This paper evaluates the costs of inflation in Australia and New Zealand using a compensated measure calculated by calibrating a general equilibrium search model in the vein of Lagos and Wright (2005). We look at how inflation affects the intensive margin (the quantity traded in each match) by examining the impact of various pricing protocols. We also look at how inflation affects the extensive margin (the number of trades) by making the market composition between buyers and sellers endogenous. We obtain much larger costs of inflation than existing studies, but smaller costs than similar studies conducted on the US economy. Depending on the version of the model the costs of 10% inflation for a $50,000 worker ranges from $250 to $2200 per year in Australia, and from $200 to $1700 in New Zealand, that is between 0.5% and 4.4% of GDP and between 0.4% and 3.4% of GDP respectively. Finally it is calculated that Australia could gain up to 1.6% of GDP per annum--1.2% for New Zealand--by implementing the Friedman rule.

Good governance - not just for the big boys governance in organizations in New Zealand

Good governance is recognized as a fundamental indicator of the success of a company. For a small- midsized company, this is particularly so, as such companies must be able to competitively demonstrate their flexibility in the face of market forces. This flexibility is the primary advantage they hold over larger firms (Dalton, Daily, Ellstrand and Johnson, 1998). Such companies, however, can find it difficult to attract good directors (Daum and Neff, 2003) and this makes developing improved strategies of governance a challenge. Taylor, Chait and Holland suggest top directors are not attracted to small/ medium companies because “the stakes remain low, the meetings process-driven, the outcomes ambiguous, and the deliberations insular” (Taylor, Chait and Holland, 2001). We suggest that the attraction of quality directors is a uniquely impacting situation for small and mid-size firms, as it is there where additional management resources should be needed most urgently. Directors on the boards of small-medium sized businesses are often lagging behind directors of large companies in that they are less likely to be independent external directors and are less likely to represent a diversity of attributes (Dalton, Daily, Ellstrand and Johnson, 1998). Arthur Levitt, former United States Securities and Exchange Commission Chair, describes the culture of medium sized business directorships as a “kind of a fraternity of CEOs who serve on one another's boards” (Stainburn, 2005). In addition, evidence suggests directors of small- medium businesses are often insufficiently trained for the role. Uncertain directors may, for example, be unwilling to ask crucial questions of managers before making major decisions. “Board members sometimes are made to feel that asking a thorny question or advancing an alternative opinion is disloyal to the administration” (Taylor, Chait and Holland, 2001). Small and medium businesses, however, are a growing contributor to the national economies of countries internationally. In New Zealand, small and medium-size firms recording large GDP values, ahead of many large businesses, which makes our investigation into good governance practices of SMEs relevant to suggest areas in which these firms can improve their governance policies and practices. We have reviewed more than 2,000 directors, executives and investors in New Zealand, making this one of the largest non-government surveys in governance. Supported by 16 large corporate organizations, such as KPMG, Business New Zealand, Simpson Grierson, Brook Asset Management, Porter Novelli, Sheffield and ‘Management’ Magazine, this work suggests that the current processes through which directors are selected and trained to serve on Boards of small and medium businesses needs to be altered. We are also concerned over the lack of director education and the close involvement of the Chief Executives as members of the Boards. There is a general concern over the lack of director independence and whether directors are effective in their roles. We are recommending an alternative process for SMEs to select directors, which will hopefully expand the available pool of directors in quantity and quality.

Australia and New Zealand: separate states but path-dependent

Australia and New Zealand (Aotearoa) have shared almost two centuries of close relations created through close geographic proximity, shared membership of political associations, and frequent policy exchange. The relevant context has shifted from the British Empire and Commonwealth to a rapidly globalizing world under US military hegemony. Australia and New Zealand were among the early settler colonies of the British Empire and this article argues that, as such, the settler colonies helped shape the form of the Empire, and subsequently the Commonwealth. This history created strong, separate, if somewhat similar, traditions of independent political experimentation. This article explores different models for explaining the cross-Tasman relationship and concludes that the path-dependent approach works best. The path was also influenced by external shocks, notably the second world war and Britain's moves towards Europe, and it was these shocks that created the necessary ruptures to create change. The first world war had catapulted Australia and New Zealand towards separate nationhood, and simultaneously strengthened their cultural and political links. The second world war pushed Australia towards the USA and led both Australia and New Zealand to develop a more explicit role as regional leaders in the Pacific. For New Zealand, Britain's membership of the European Community created an economic crisis and politico-cultural stresses which are reverberating still. Such shocks created the preconditions also for closer association, exemplified in the CER Treaty, which in turn draws upon historical precedents and experiences.

They talk the talk, but do they walk the walk? sustainability acceptance is low in German and New Zealand firms

Through the International Sustainability Acceptance Measurement (ISAM), we intend to better understand the level of acceptance of sustainability as a practical management tool in business around the world (www.worldreply.com). It was observed by others that sustainability concepts often stay on a rather general level where it is hard to identify specific indicators and the potential for future development.i In an effort to contrast the level of sustainability in the ISAM countries, the participating universities analyze their respective country data and then co-operate to benchmark and compare this information around the globe. This makes the ISAM work one of the few world-spanning efforts to look at the practical implementation of sustainability.