Photo: 123rf
Billions of dollars has been flushed through the economy in response to the Covid-19 pandemic by the government and Reserve Bank.
As well the as the government's $50 billion pandemic response package, the central bank lowered borrowing rates to record levels and introduced a $100 billion dollar quantitative easing programme.
Quantative easing is the modern version of printing money, where the central bank electronically issues NZ dollars to itself and uses that to buy securities such as government bonds from the market.
Dr John McDermott, macroeconomist and Executive Director of independent economic research institute Motu, talks to Kathryn about how and when the Reserve Bank will move away from cheap and plentiful money.
