Sign in Subscribe

Topic

Monetary policy

A collection of 11 issues

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.

A sticky, stagflationary mess

Australia risks "sticky" inflation if real wages start to outpace productivity, requiring higher rates longer and job losses as businesses start to adjust on the employment rather than not wage margin. Continued fiscal deficits also fan future inflation risks.

How to lose a truck load of cash

My recent FOI showed that the RBA Board was warned about the risks of QE but appeared to ignore those concerns, ultimately leading to huge losses with minimal benefits. The fiscal cost alone looks to be well over $50 billion, or more than $5,500 per household – a massive policy blunder.