Our Team Auckland Central | Tuariki Delamere Banks Peninsula | Ben Atkinson Bay of Plenty | Chris Jenkins Coromandel | Rob Hunter Dunedin | Ben Peters Epsom | Adriana Christie Hamilton East | Naomi Pocock Hamilton West | Hayden Cargo Hutt South | Ben Wylie-van Eerd Mount Albert | Cameron Lord Nelson | Mathew Pottinger New Plymouth | Dan Thurston-Crow North Shore | Shai Navot Northland | Helen Jeremiah Ōhāriu | Jessica Hammond Rongotai | Geoff Simmons Southland | Joel Rowlands Tauranga | Andrew Caie Te Atatū | Brendon Monk Wellington Central | Abe Gray Whangārei | Ciara Swords
- News & Events
Won't giving out free money with the UBI just result in inflation?
There is the potential for this to happen however, given the current low inflation environment it is unlikely that general overall inflation will increase markedly and certainly not outside the Reserve Banks 1% to 3% preferred range. With an extra $16B in circulation (before the property tax is paid) in an economy of $310B GDP the maximum additional inflation would be 5% if there was no ability to increase supply or reduce consumption of goods and services. Given the complexity of interactions that result in inflation the number expected would be lower than this.
Was this helpful?