In the aftermath of the Global Financial Crisis, Russel Norman suggested that the Reserve Bank of New Zealand should print money (lower the interest rate) in order to increase output. Don Brash, a former governor of the Reserve Bank of New Zealand, countered that they should only print money if the government simultaneously cut spending. Explain in turn the likely impact of each of their suggestions and comment on the implied differences in their views on the state of the economy (i.e. whether they assume New Zealand economy is at or below full employment potential output level).

Note: You should explain your answer with appropriate references and diagrams, as learnt in lectures/workshops. A separate introduction/conclusion is not required.