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The Reserve Bank Australia has exhausted the limits of monetary policy, There’s no magic pudding, says governor Philip Lowe.
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Almost all of the Reserve Bank’s new Term Funding Facility has ended up in the hands of big businesses. There’s a way to make sure small businesses get it.
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We’re running out of interest rates to cut to keep the economy from sinking. Before the next recession occurs, we need to come with an effective approach to monetary policy.
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The US Fed’s surprise rate cut might not achieve a lot. But it definitely sends a message the COVID-19 virus crisis is a really big deal.
Sweden’s central bank ways it will no longer invest in assets from governments with large climate footprints, even if the yields were high.
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Central banks are increasingly taking into account climate change in deciding how to invest.
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?
“I think Australia has absolutely nothing to hide but cooperation will bring a cost”, says Michelle Grattan on the government cooperating with the inquiry into the Mueller inquiry.
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Deep Saini and Michelle Grattan discuss the consequences of the controversial phone call between Morrison and Trump as revealed by the New York Times.
The bank will keep cutting until the economy improves and unemployment turns down. There are few signs of it happening yet.
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If needed, Governor Lowe will cut rates to near zero, and then effectivly cut them further.
The most obvious reason for wage stagnation is the decline in unionisation over the past three decades. But you won’t hear that from government economists.
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After decades of research showing the link between union power and wages growth, government economists don’t want to talk about it.
Once, emulating Germany would be something to be proud of. Not at the moment.
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With a relatively low debt to GDP ratio, Australia was never at risk of becoming Greece. But Germany, with negative interest rates and scant prospects for economic growth, is an open question.
Every few years, the government hands the Reserve Bank a new set of instructions.
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The next set of instructions handed to the Reserve Bank will have to be realistic. That might mean a big change.
Our standard economic model says when labour is scarce, the cost of labour should increase. But something is broken. This is not happening.
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We’re facing a global economic problem that no one really understands or knows how to fix.
APRA’s move will make the Reserve Bank rate cuts more potent.
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Under cover of a speech from the Reserve Bank governor, the Prudential Regulation Authority has moved to make it 10% easier to borrow.
Treasurer Josh Frydenberg and Prime Minister Scott Morrison at a campaign rally. They’ll have to shore up a weakening economy.
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Frydenberg and Morrison will have to switch from boasting about the economy to fixing it, quickly.
On the first Tuesday of every month but one the Reserve Bank has to make a decision. This time the inflation rate is zero.
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Interest rate cuts don’t work like they used to, and they help us put off the hard things we need to do to improve our lives.
If we want economics to appeal to young Australians, it needs to move away from theory and towards tackling some of the trickiest issues faced by the next generation.
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For economics to play a more helpful, critical role, it must abandon blind faith in the free market and embrace the social, historical, and environmental context in which economics actually happens.
Central banks have been struggling to achieve their targets.
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Immigration and light rail are both worthy topics of discussion, but it’s time to discuss a new monetary policy framework.
The RBA governor gave a speech on demographics and monetary policy.
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The new RBA monetary statement is just like the old one.
Reserve Bank of Australia governor Philip Lowe addressing a forum on wages and productivity.
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Reserve Bank of Australia governor Philip Lowe has effectively ruled out an interest rate rise until wage growth tops 3%.
The New Payments Platform could lead to more fraud and abuse.
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The New Payment Platform may speed up transactions, but evidence suggests it could also lead to more scams and fraud, and many customers won’t switch over.