Could this be the biggest decision in Australia’s and New Zealand’s history? 146



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In the wake of the cricket world cup final that saw Australia and New Zealand face off, and just weeks away from the centenary commemoration of Anzac Day, there’s a lot for Australia and New Zealand to share.

The two countries have always had a strong bond, that promptly turns into rivalry as soon as anything sport-related is brought up, but is it time to connect these two countries more intrinsically?

An article in the Sydney Morning Herald this week has opened up the age-old discussion about a joint currency – an Anzac currency between the two nations and today we want to know, what do you think?

In 2012 Australian and New Zealand Productivity Commissions and economic think tanks explored the topic but rejected it after reviewing the idea. Despite the fact that it did not continue, some interesting pros and cons came up for discussion.

Both countries have a lot in common. Similar political structures, similar values, they are both Anglo-Saxon Christian countries and are both in the Commonwealth. It takes about three hours to travel between the countries and the cross Tasman travel is huge. These are the reasons why it should be explored, but what are the benefits to each country?

A single currency for the two countries would benefit the two-way business models, encouraging trade and investment across the countries. However, the New Zealand GDP was estimated to be around $231 billion in 2014 whereas the Australian GDP sat at $1.525 trillion. This has caused many people to believe that Australia will overtake New Zealand business and infiltrate the economy. After a country of New Zealand’s size has worked so hard to be a strong and independent economy, this idea hasn’t been well received.

However, as the Australian economy is typically stronger than the New Zealand economy with a higher dollar value (let’s pretend the Aussie dollar isn’t so low right now), it could boost New Zealand’s strength by the two countries trading off this.

The major concern is that for an integrated economy, both countries would really need more across the board consistency. Interest rates would need to be stabilised across the countries, which would give less flexibility in responding to economic conditions. Some economists went so far as to say that it would be unsuccessful until Australia and New Zealand combined politically.

There’s benefits and there’s negatives to the entire concept and regardless of what is economically easy, it comes down to the biggest question – what do the people want?

So today share your thoughts with us… What do you want to see happen? Would you like to see a joint currency between Australia and New Zealand? Share your thoughts on the issue in the comments below…

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. We will only become stronger by becoming closer. A common currency is one step. Another would be to open up the skies so as to make Trans-Tasman travel domestic.

  2. Haven’t spent any time pondering this but my initial response is…If it aint broke why fix it?

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  4. No benefits for NZ. We are a small country and satisfied with the way we compete with Ausie. They are welcome to come and live here.

  5. I have lived in NZ for 40 years and consider myself a Kiwi. New Zealand should NOT become part of Australia. It should retain its own sovereignty and independence. The issue of sovereignty and independence has not been resolved between Maori and Pakeha after 150 years and union with Australia would muddy these waters and create a raft of new issues. Closer trade ties, easier travel and other agreements that benefit both nations by all means but union as one country NO THANKS.

  6. A big NO from me. We don’t want to embrace their “couture” leave us alone Australia we are to Nice, wouldn’t be able to cope with you ways.

  7. How does a country with a massive deficit and a large unemployment total, benefit a country with low unemployment and a so-called Rock Star economy? Beats me Mr Olesen. Making an open skies policy would most likely make it easier for the likes of the Queensland Fruit fly and other pests to enter the Land of the Long White Cloud. I’m sorry, it just won’t work!

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