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Nadine Chalmers-Ross, who's the new host of TVNZ's Business show, explains why seemingly dull economic news really does matter to us all.
In the Reserve Bank's museum in Wellington stands the MONIAC - a hydraulic economic model created by New Zealand economist Bill Phillips in the 1940s.
A few years ago the Reserve Bank Governor, Dr Alan Bollard, talked me through how the model works.
Briefly, it uses a series of containers representing different parts of the economy, like government, householders and businesses, while a coloured fluid representing income, spending and GDP is pumped around the system.
The machine was a fascination to me and provides the clearest illustration I can think of for my fascination with economics - nothing happens in isolation.
Whenever interest rates or tax rates are hiked or cut, the exchange rate goes up or down, export prices soar or slump - there are always consequences. And that means it always matters to somebody.
It answers the question oft-asked by news editors: "Who cares?". Well, we all do - or at least we should.
While the terms might seem foreign and remote, their consequences are not.
The unemployment rate is just a percentage, but it represents thousands of people. The CPI or Consumers Price Index doesn't sound very exciting, but no one wants to see prices rise faster than their wages.
The OCR or Official Cash Rate sounds equally dull, but mortgage holders and savers alike are directly affected by its movements.
Probably the hardest-sell to the general public is the term 'current account deficit'. But one only has to look at the debt problems being experienced in Europe to determine why being a highly indebted country is everyone's concern.
A fascinating ride
I've experienced a veritable roller coaster since becoming a business reporter.
I've seen booming property prices right through to the bubble bursting. I've watched commodity prices soaring, slumping, then soaring again.
I've eyed the dollar's every movement as it raced up to 80US cents, fell to around 45US cents and then climbed all the way back up to where it sits now, again perilously close to 80US.
I've watched major international financial institutions bailed out for billions or left to simply go bust, and then seen the resulting plummet on the stock markets. I've listened to the stories of those who've lost money in the myriad of local financial institutions that have bit the dust.
I've heard the whole gamut of bullish, bearish and sometimes foolish forecasts.
It's been a fascinating ride.
That ride promises to be even more fascinating for me in the coming year, as I get to watch what will hopefully be a rosier 2011 unfold from the hot seat of hosting the Business show at 6am Monday to Friday.
I take over from Corin Dann , who has done a sterling job anchoring the show and driving its editorial direction over a tumultuous few years for global and domestic economies.
His move to the Breakfast couch leaves very big shoes to fill, but I'll be doing my very best to fill them.
Join me for TVNZ's Business show from 6am next Monday, January 24th.
Read more of Nadine's columns here
