Hot Take: Trump's first day
US President Donald Trump has already signed a hundred executive orders with wide-ranging implications, including for Australia.
Latest
Striking a balance on immigration
Australia should prioritise skilled migrants by using prices and incentives instead of queues and quotas.
Hot Take: The labour market keeps on trucking
Strong labour force data in December have all but ruled out a February rate cut.
Barriers to nuclear, the tradie shortage, trade-offs still matter, the deal of the century, and don't fire the bureaucrats
For whatever reason I've read more than the usual amount of interesting content over the past week, so here's another post replete with my thoughts on several topical issues. Nuclear is easier said than done In somewhat of a cautionary tale for Peter Dutton's
Time for reform, censorship and good intentions, how California mismanaged its fires, and the housing target is a bust
I trust everyone had a lovely weekend, or for those just getting back into the office, a wonderful summer break! The people want reform The Pew Research Centre released the results of its latest survey measuring the "support for changing the current economic system" across 36 countries: "
Why I'm sour on a sugar tax
A sugary drink tax will do more harm than good.
Hot Take: November's inflation and the RBA's dilemma
Inflation cooled in November, with implications for interest rates.
Hot Take: The end of Trudeau
Canada's Prime Minister Justin Trudeau has resigned. The Albanese government could learn a thing or two about how it all went so wrong.
Getting serious about housing, ending the Future Fund, the latest bird flu, just tell the truth, and lessons from the NBN
I trust everyone's nice and refreshed from the summer break! Lots of interesting things to discuss today, starting with some positive-sounding housing policy news from NSW. Potentially good news on housing The NSW government and the opposition are getting serious about housing: "NSW Opposition Leader Mark Speakman
Hot Take: The Aussie dollar's fresh lows
The Australian dollar's slide to fresh lows reflects complex global and domestic forces, with implications for trade, competitiveness, and economic policy.
A troubling economic scenario
As Australia grapples with its post-pandemic recovery, the principal macro challenge remains inflation.
Blowing the boom, eurosclerosis, China's decline, why Nvidia is American, beware the dunkelflaute, limits to AI, and the brain drain
Most readers of Aussienomics are probably still busy soaking up the Australian summer rather than looking for interesting tidbits in their inboxes. But for those of you still checking your emails, here are a few of my thoughts on some of the essays, papers and news I've read
Monetary policy
Hot Take: Australia's narrowing path
A new report warns Australia's path to economic stability hinges on tackling inflation, tax reform, and curbing overspending.
Budget
The budget update, workers not jobs, the costs of industrial policy, one year of Milei, and the bullish case for hydrogen
The mid-year budget update was depressingly bad; AI won't leave a third of workers unemployable; a Future Made in Australia will politicise the economy; Argentina's remarkable year and what it means for Australia; another look at hydrogen; and the per capita recession may already be over.
Energy
Australia's nuclear option
How the kakistocracy is getting in the way of energy abundance.
Growth
A sad economy without much hope
Australia's economy risks stagnation as government spending crowds out the private sector, increasing inflation, slowing productivity, and leaving the nation vulnerable to European-style economic malaise.
Trade
Trade War Two, China's supply subsidies, unintended consequences, and the mother of all bubbles
Trump will almost certainly usher in Trade War Two; how China subsidises supply and restricts demand; the Australian Greens reveal yet another awful policy idea; and is the US stock market in the mother of all bubbles?
Growth
It's not as bad as you might think
Despite Australia's sluggish economic growth and record-high government spending, a closer look at the data reveals that the situation may not be quite as dire as it seems.
Energy
Energy abundance, the price of ethnonationalism, and the dystopian myID
How not to do energy policy; the problems with acknowledgements to country; your ID or your facial data; the costs of land use zoning; and the war in Ukraine may not last much longer.
Reform
Parliament's hectic week, a new era in policymaking, and a glimpse into Australia's future
The Albanese government took the guillotine to democracy; Argentina is getting a good old-fashioned dose of microeconomic reform; what Victoria can teach the rest of Australia; prediction markets and the future of forecasting; and trade works in roundabout ways.
Energy
Saving the planet could make some of us rich
Transforming Australia into a green manufacturing "superpower" won't automatically generate widespread prosperity, and is more likely to enrich only a select few while imposing broader economic costs on the majority.
Energy
Australia's nuclear energy debate
A recent nuclear energy debate highlighted the potential limitations of relying solely on renewables, sparking concerns about the economic viability of Australia's energy transition.
Migration
A policy win, Albanese's inflation challenge, and Housing's silver lining
No quotas on international students (good riddance); how people think of money could cost Albanese at the next election; at least Australia's housing market still functions like a market; why Europe stagnates; the not-so Future Fund, trade thoughts, Elon Musk's incentives, and the future of war.
Reform
Milei and the nest of rats
Javier Milei's bold reforms aim to revive Argentina's economy, but political hurdles and lingering Peronist-era policies threaten his long-term success.