##s globally today ". and, in contrast to some of the other topics discussed at the hamburg summit, the g20 member states were unanimous in supporting the objective of inclusive growth. so what does inclusiveness mean with respect to growth? let ’ s start by breaking the term 1 / 3 bis central bankers'speeches “ inclusive growth ” down into its two components : “ inclusive ” means sharing the benefits of growth amongst all, and “ growth ” can be simply stated in economic terms as a long - term increase in real gdp. thus, we are talking about economic prosperity for the benefit of everyone. put this way, it becomes obvious that inclusive growth is not a recent invention but rather an economic goal that is just common sense. after all, back in 1957, ludwig erhard, the former german minister for economic affairs and later chancellor, entitled his book on the german social market economy " wohlstand fur alle ", which translates as “ prosperity for all ". although the invisible hand at work in a market economy leads to an efficient allocation of resources, it is now widely accepted that the market mechanism on its own creates winners and losers. while technological change generally leads to an increase in production capacities, it affects workers with different capabilities in different ways. obviously, a far - reaching redistribution would hamper incentives. excessive public expenditure — or speaking more generally – excessive redistribution through the tax system might harm the potential for sustained growth because entrepreneurs and workers become discouraged. on the other hand, " excessive inequality is not conducive to sustainable growth " either, as christine lagarde rightly stated. 1 excessive inequality can harm growth because it dampens the prospect for a significant part of the population of ever participating in the country ’ s prosperity. and so it is a matter of course that in most countries, the public sector shares in individuals ’ income to a certain degree by imposing taxes, with the majority of these countries imposing progressive taxes. this enables the public sector to supply public goods. achieving social cohesion by means of social security transfers, building human capital by subsidising education, and promoting the labour market participation of women, the long - term unemployed and lowskilled workers – all of these things can boost not only inclusion, but growth as well. bearing this in mind, it is important to find the right calibration of growth policies. the public debate on inclusive growth policies often takes the development of economic inequality over recent decades as a starting point. rising inequality is

. rbnz. govt. nz / about - us / statements - of - intent / statement - of - intent - 1 - july2020 - 30 - june - 2023. robertson, g. ( 2020 ). letter of indemnity – august 2020. retrieved from https : / / www. rbnz. govt. nz / / media / reservebank / files / news / 2020 / letter - of - indemnity - from - the - minister - of - finance - 9august - 2020. pdf the treasury. ( 2020 ). new zealand government bond tender schedule – may 2020 [ press release ]. retrieved from https : / / debtmanagement. treasury. govt. nz / investor - resources / new - zealandgovernment - bond - tender - schedule - % e2 % 80 % 93 - may - 2020 ref # 9122402 v2. 12