The study looked at how government spending and taxes affect New Zealand's economy over time. They used a special model to see how changes in spending and taxes impact things like output, inflation, and interest rates. The results showed that when the government spends more money, it can boost the economy in the short term, but lead to higher interest rates and lower output in the long run. Changes in taxes had less clear effects on the economy, but also had modest impacts on GDP. Overall, the study found that past government spending has mostly followed the ups and downs of the economy, and has influenced long-term interest rates. Increasing government spending can have a positive effect on inflation, but it is limited.