High interest rates are here to stay
Persistent inflation, sluggish productivity growth and expansionary fiscal policy have trapped Australia in a precarious economic position, with big implications for the next federal election.
Topic
Monetary policy
A collection of 13 issues
Simply bananas
Monetary policy missteps can arise when journalists and politicians confuse relative price movements for inflation, leading to misguided calls for rate cuts based on things like food price fluctuations rather than the underlying drivers of inflation.
The Greens are deeply unserious
The Labor government's potential deal with the Greens to eliminate negative gearing and reduce the capital gains tax discount may ultimately be more symbolic than effective in tackling Australia's housing affordability crisis.
Gittins it wrong on inflation
Ross Gittins' recent column misunderstands basic economics, resulting in a confused narrative that oversimplifies inflation, misreads corporate profits, and misinterprets the relationship between industry concentration and competition.
False prophets, forward guidance, and failed lessons
The RBA's conflicting statements on uncertainty and accountability expose a dangerous pattern of misguided forward guidance and unlearned lessons, threatening its credibility and effectiveness in controlling inflation.
Jim Chalmers' Nixon moment
As the Australian government attempts to manipulate inflation metrics through targeted spending, the RBA finds itself in a balancing act between economic stability and political pressure, echoing historical tensions between Nixon and the Fed.
Bad news is bad news again
A closer look at the recent market rout reveals underlying concerns about Australia's economy, and that the RBA's next moves will be as crucial as ever.
Why the RBA should hold steady
It's probably too late in the cycle to hike rates any further when what's desperately needed is tax, spending and regulatory reform.
An independent RBA is better than the alternative
An independent Reserve Bank of Australia is crucial for economic stability and low inflation. However, a big-spending Budget and attempts to politicise the central bank would jeopardise its independence, leading to higher inflation.
What's up with Japan?
The yen's collapse has made Japan a tourist hotspot, but it has also sparked crisis fears. While a full-blown crisis is unlikely due to Japan's relatively low interest costs and its ability to raise taxes, an ever-aging population and repeated policy missteps are only increasing the risks.