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As the government is learning, a 'wage freeze' can come with unintended consequences

  • Written by Laura Meriluoto, Associate Professor of Economics, University of Canterbury
As the government is learning, a 'wage freeze' can come with unintended consequencesGood intentions, bad reactions: Prime Minister Jacinda Ardern and Finance Minister Grant Robertson.GettyImages

You would be hard pressed to find an economist who would argue against the merits of fiscal responsibility and controlling government debt. This is why it was so hard to believe the government’s rationale for a public sector wage...

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