Rogernomics — The Neoclassical Revolution

Abstract

If Hawke could legitimately claim that Sir Robert Muldoon had had a far more profound impact on New Zealand’s economic development than his predecessors, then much the same could be said of his successor as minister of finance, Roger Douglas. On taking office the new Labour government quickly embarked upon a macroeconomic stabilization programme, combined with the most wide-ranging set of microeconomic reforms undertaken in any OECD member country. The latter reforms included the deregulation of the financial sector, the removal of various forms of assistance to producers, particularly in the agricultural sector, some acceleration of the pace of import liberalization, radical tax reform, a major overhaul of the public sector and the privatization of several state enterprises. Douglas was the chief architect and driving force behind this economic strategy, which led to its being labelled ‘Rogernomics’.