Much of the expert commentary on Australia’s monetary policy settings is guided by what is happening in other countries. However, monetary tightening can have a markedly different impact in different countries, and while Australia appears to have been more cautious, so far it seems to have managed well. A brief history of recent monetary policy Continue reading »
Economy
The chief business of the American people is business." This sentiment rings true today, particularly when examining the growing divide between business leaders and political elites regarding China. While business leaders view China as a crucial partner, political figures continue to frame the count Continue reading »
Shortly after he became Treasurer, in July 2022, Jim Chalmers announced a review of the Reserve Bank – the first since the current monetary policy arrangements were instituted in the 1990s. A lot of the recommendations from the review were not controversial and could be described as “improved housekeeping”. As Chalmers recently told journalists, the Continue reading »
Something absolutely stupefying is happening in Germany: its iconic auto company, VW, the darling of every Chancellor from Adolf Hitler to Olaf Scholz, appears to be in a death spiral. At the end of this story I’ll draw a link to the salutary lesson countries like Australia and New Zealand need to draw from the Continue reading »
Donald Trump inherited a strong economy from President Barack Obama and managed it poorly. Real GDP grew more slowly under Trump than it had under any president since World War II. He was the only president since then to preside over a fall in the number of workers with a job. In 2016, the United Continue reading »
An article published in the Medical Journal of Australia earlier this year points to increased private equity (PE) activity in Australian healthcare, conservatively estimating A$4.5 billion in acquisitions across general practice and selected specialties in 2022 alone. The paper refrains from extensive commentary on the drivers and implications of this trend. However, it points to Continue reading »
Australia is to spend mind-boggling money to weaken its own security. Minister RIchard Marles has released a National Defence Strategy which centres on what he calls “projection”. That is, Australian forces threatening China from China’s surrounding waters. The Albanese Government’s defence policy manufactures grievous risk for Australia. That risk must be understood by the government. Continue reading »
The global wheat trade is undergoing a transformation, shaped by geopolitical shifts, strategic investments, and historical legacies. Central to this evolution is China’s Belt and Road Initiative and its expected impact on traditional trade relationships, including those with Australia. The Australia-China wheat trade has deep roots, tracing back to the 1960s when Australia supplied grain Continue reading »
The Reserve Bank has explicitly warned against any expectation that interest rates will start to fall soon. On the other hand, the Treasurer recently claimed that the Reserve Bank is smashing the economy, implying that interest rates should fall soon. Who is right? Interest rates have risen exceptionally rapidly over the last two years, with Continue reading »
While most Australians remain well-housed, few public policy experts would argue that our housing system is today in good shape. Homelessness continues to increase and both rental and mortgage affordability stress are widespread. But although compounded by post-pandemic market disruption, such problems have been mounting over decades. Perhaps the single most powerful indicator of dysfunction Continue reading »