Eric Crampton: NZ Initiative Chief Economist on the Treasury report revealing the cost of the Covid-19 pandemic to be $66 billion

An economist says the Government did the best it could in the early stages of the Covid-19 pandemic.   The Treasury's latest report calculates the total cost of the Covid-19 pandemic at $66 billion.   The Government ignored official advice at the time to ease spending.   New Zealand Initiative Chief Economist Eric Crampton told Mike Hosking it is hard to fault anyone up until late 2020.   He says, afterwards, the Government failed to come up with solutions outside lockdowns and wage subsidies.   Treasury is now suggesting the Government establish an independent fiscal institution for better scrutiny.   Crampton says Treasury isn't in a position where it can effectively challenge the Finance Minister's decisions.   He says the public currently can't rely on Treasury for clear warnings when things are going wrong, which is needed for democratic accountability.  LISTEN ABOVE See omnystudio.com/listener for privacy information.