In 1984, the country was effectively bankrupt. Borrowing was no longer an option, tax was at crippling levels, and the country had wearied of the authoritarian ways of Prime Minister Sir Robert Muldoon. Roger Douglas' first step was a devaluation, followed by floating the currency and a number of other deregulatory measures. Unfortunately, these did not include the labour market. The result was terrible inflation, which the Reserve Bank tamed by means of a high interest rate regime which stymied economic recovery for some years.
Foreign affairs is one thing, domestic economic policy is another.
Oh, you wouldn't believe how the Left jerked off over this. Hell, more than a hint. It was a great time to be around. The tragedy now is that Roger thinks he can pull that kind of stunt again. In just the last couple of years or so, the reform movement seems to have run out of steam.