A cargo ship owned by Yang Ming departs New York harbor on April 9, 2018.
The economic theory of comparative cost advantage is more akin to natural law -- it can’t be wished away. And during the ongoing trade war ignited by Donald Trump, it has never been more relevant.
It all comes down to incentives and the size of parliament.
Our revolving door prime ministers are the result of the politicians being too responsive to what we think, and there being too few of them.
You may still feel losing a wallet more than finding it.
A new study claiming to debunk this core part of behavioural economics suggests we really need a new and improved model for loss aversion.
Aggregate demand is being hit by the concentration of income growth among the top earners and is now a drag on economic growth.
News that Australian CEO pay has soared to a 17-year high at a time when ordinary workers' wages are flatlining is ultimately bad news for economic growth and prosperity.
The treasurer referred to the A$13 billion “zombie” measures the Senate has failed to pass as a “Senate tax”, in justifying the tax increases in this budget.
The budget was extraordinary in many ways. It is an abandonment of restraint on taxes by a liberal government. It is nakedly populist and it also acknowledges that government debt can be productive.
It is an attractive proposition to say we would gain significant efficiencies if there were a limited number of major providers of government-funded human services.
If we continue to base our views of the charity sector on incorrect assumptions and perceptions we run the risk of doing considerable damage to a national asset.
Trying to answer policy questions with economics is bound to involve ideology.
Image sourced from www.shutterstock.com
Economics doesn't have all the answers – at least not for those looking to escape ideology.
The Reserve Bank, under Governor Philip Lowe, this week kept the cash rate at 1.5%.
It is a puzzle as to why businesses are reasonably confident but not willing to invest.
Money printing isn’t the answer to all economic problems.
Image sourced from Shutterstock.com
If it is so easy to fix a nation's economic ills -- just run the printing presses round the clock -- then why doesn't everyone do it?
Fighting it out.
Stefan Rousseau / PA Wire
Britain will continue negotiating the terms of its relationship with Europe, whatever the outcome of its referendum.
The Corbynomics of commuting.
The author of Corbynomics makes the case for studying 'real-world' economics.
It’s the technology highway which may drive economic growth.
In our first piece in a new series on economic theories that are changing the way we think, how is technology creating growth?
How can you tell if you’re getting a great deal or buying a lemon?
Asymmetric information -- where one party to a potential transaction knows more about the deal than the other -- can cause markets to collapse. Luckily, we've invented a few tricks to deal with it.
No Cable extension.
The dismal science has had a dismal verdict from the UK electorate, and the new government isn't coming to the rescue either.
A male bonobo who likely holds some irrational biases when it comes to economic decision-making.
Just the other day I found myself in the waiting room of an automotive dealership. While my car was being serviced, I flipped through a product brochure. One ad for an oil change boasted that it would…
When faced with an economic policy agenda, the public must be persuaded on two fronts: that it is justified both by evidence and morally.
It is now more than three months since the Abbott government released its first budget. Amid the subsequent wrangling over controversial measures such as the A$7 GP co-payment and re-indexing the fuel…
A new benchmark to measure the economic response to climate change.
Mario Sánchez Prada
The UK government’s senior adviser on science has made an entirely sensible call for researchers and policy makers to move the climate change debate towards workable strategies and solutions. The trouble…
An IEA legacy on the stairs at 10 Downing Street?
The Prime Minister's Office
The Institute of Economic Affairs (IEA) is enjoying another moment in the sun. Australian politics is starting to move to the beat of its drum as Treasurer Joe Hockey talks about an “end to the age of…
George Soros says it is necessary to redefine the assumptions and axioms on which economic theory is based.
According to billionaire George Soros, co-founder of the Institute for New Economic Thinking, proving the bankruptcy of traditional economic theory is “mission accomplished” and it is now time to determine…
Buying power doesn’t always stack up as the best measurement for who we are and how far we’ve come.
In the verbal volley between Gillard and Abbott, Swan and Hockey, there is a conversation that we are not hearing. It bubbles below the consciousness of mainstream Australia, a conversation that is old…