Would the economy be in better shape if the RBA had cut interest rates sooner?
AAP Image/Bianca De Marchi)
The Reserve Bank of Australia says it's prepared to ease monetary policy further if needed to stimulate the economy. But is the policy working when interests rates are so low?
Reserve Bank governor Philip Lowe (right) says he needs government help to boost the economy. Treasurer Josh Frydenberg is yet to provide it.
Every one of the 13 economists surveyed by The Conversation thinks more stimulus is needed. None think it should all come from the Reserve Bank. Most think the budget surplus can wait.
This week’s Essential poll showed 56% of voters would prioritise stimulating the Australian economy over getting back to budget surplus.
Ross Gittins on the government’s “surplus obsession”
The Conversation, CC BY 29.3 MB (download)
As the Australian economy continues to struggle, many argue that stimulus is needed, urging the government to abandon its "surplus obsession".
The IMF headquarters in Washington DC.
The IMF has increasingly turned its focus to growing inequality worldwide. Ironically, research shows that policy reforms it mandated exacerbated income inequalities.
In DC Comics’ world of opposites, a bizarro bond is “guaranteed to lose money”. Today a bizarro bond is not just a fantasy.
In many countries people are now paying more for bonds than they will receive at maturity. These negative interest rates should make it a good time for investment.
Debate about SA Reserve Bank’s mandate must be done in a more considered manner, informed by evidence.
The debate about the mandate of the South African Reserve Bank must be located within a clearly articulated political vision and social compact on the kind of society South Africans aspire to.
The fruit of your coins.
Why the coming generation of cryptocurrencies could force us to rethink the entire monetary system.
Facebook co-founder Chris Hughes fears the Libra currency would insert a ‘powerful new corporate layer of monetary control between central banks and individuals’.
A former senior economist with the Reserve Bank of Australia doubts Facebook's cryptocurrency will take control of monetary policy away from central banks.
Every few years, the government hands the Reserve Bank a new set of instructions.
The next set of instructions handed to the Reserve Bank will have to be realistic. That might mean a big change.
Both opposition leader Bill Shorten and prime minister Scott Morrison dodged the question about maintaining a surplus no matter what.
The state of budget-balance fetishism in Australia means political leaders promise to balance the budget, no matter what.
It’s one thing to have money, it’s another to be able to spend it to best effect.
Last time Australia got lucky. We are unlikley to get lucky again.
City Skyline and Main River in Frankfurt, Germany.
Valerian Alecsa / Shutterstock
Economic polarisation across Europe is becoming an important phenomenon, in part driven by monetary policies that can increase office prices and can even affect the fundamentals that drive the markets.
Whether there is a floor beneath which cuts in interest rate are ineffective depends in part on house prices.
It is thought that it doesn't help much to cut official interest rates toward or beyond zero, and maybe it doesn't, but new research suggests the answer has a lot to do with the housing market.
The push to nationalise South Africa's Reserve Bank is informed by the mistaken view that private shareholders affect monetary policy.
The RBA governor gave a speech on demographics and monetary policy.
The new RBA monetary statement is just like the old one.
Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee.
Reuters/James Lawler Duggan
President Trump has been attacking the Fed's current policy of slowly raising interest rates. A former central bank official explains why that's so troubling.
People queuing to withdraw cash at an ATM. Demonetisation in India has not met its target and actually reinforced informal networks.
Instead of a clear movement toward more formalised economic transactions, demonetisation in India has reinforced the informal economy.
The South African Reserve Bank needs to guide the market on how it is going to treat VAT increase in its inflation targeting approach.
Treasury Secretary Steven Mnuchin walks through the snow at Davos.
AP Photo/Markus Schreiber
The treasury secretary said a weak dollar would be 'good' for the U.S. Here's why he's wrong.
A change in the ownership of the South African Reserve Bank from private shareholders to government shouldn't impact the constitutional mandate of the central bank in any way.