It’s been 10 years since the U.S. signed into law a scheme to print money, essentially, and save the financial sector amid the sub-prime mortgage meltdown. Did it work? And who’s truly benefitted?
Can the RBA do anything to address persistently low inflation?
AAP
As with economic growth and wages, the RBA’s response seems to involve crossing as many fingers and toes as possible and publicly proclaiming that things are looking good.
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.
The air may fizzle out of the Australian balloon, or it may burst violently.
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The Turkish lira has dropped more than 15% this year against the US dollar.
The RBA argues that it needs to balance financial stability risks against the need to stimulate the economy through lower interest rates. But this has left inflation running below its target range.
DARREN ENGLAND/AAP
If the RBA continues to sacrifice its inflation target on the altar of financial stability risks, inflation expectations and our wages growth will continue to languish.
New research shows there is a direct relationship between central bank interest rate decisions and mental health.
Protestors call for an investigation into bank regulator APRA outside the Commonwealth Law Courts Building in Melbourne, location of the banking royal commission.
Luis Ascui/AAP
All eyes will be on how ASIC and APRA respond to the findings of the banking royal commission. Will they be defensive about past mistakes, or move forward with tighter regulations?
There were interesting developments in the tit-for-tat tariff announcements between the US and China this week.
Roman Pilipey/EPA/AAP
Chinese President Xi Jinping spoke of plans to further open up the Chinese economy this week - and the world economy should hope US president Trump feels vindicated by this.
Unfortunately for the RBA, the health of the economy is not measured on the Geologic Time Scale.
Alfonso Silóniz/Flickr
Most of us bargain hunt when shopping for a new blouse or pair of blue jeans, yet for some reason we don’t with interest rates, potentially costing us thousands of dollars.
An ice sculpture titled ‘Main Street Meltdown’ melts near Wall Street.
AP Photo/Frank Franklin II
The collapse of an obscure corner of the financial market a decade ago foreshadowed the Great Recession. The stock-market swoon in February should offer a similar warning.
Longer-term interest rates influence households’ and businesses’ spending and investment plans.
Dan Peled/AAP
While the RBA might not be able to influence the current cash rate, it can still influence longer-term rates by offering guidance about its future policy decisions.
Construction of apartments will be a key thing to watch in 2018.
Tracey Nearmy/AAP
The chair of the Federal Reserve is often considered the world’s ‘second-most-powerful person.’ So who is Jerome Powell and why does it matter that he may soon head the Fed?