Peter Martin, Crawford School of Public Policy, Australian National University
At the right moment, Australia’s Reserve Bank would be wise to stop taking its lead from the US – holding interest rates here steady, even if they’re still rising overseas.
The Fed’s recent rate hikes are contributing to higher prices and growing recession risks around the world, yet there are good reasons why the US central bank has to keep its focus domestic.
With a recession seeming imminent, many Canadians are rightfully concerned about the state of their finances. Here are some ways you can be prepared for one.
Rising inflation rates due to supply-side factors – COVID-19, Ukraine and supply chain shortages – make countering inflation difficult for the central bank.
The US economy shrank for a second straight quarter. While some call that a recession or a strong sign of one, a financial economist explains why the term probably doesn’t yet apply.
Peter Martin, Crawford School of Public Policy, Australian National University
The panel believes Australia will avoid a recession the year ahead, but is much less certain about the United States. It expects real wages to go backwards and economic growth to sink.
The Fed raised interest rates the most in nearly three decades to fight stubborn inflation. A finance expert explains what’s happening, the risks and what it means for consumers.
Peter Martin, Crawford School of Public Policy, Australian National University
New treasurer Jim Chalmers was part of Australia’s successful effort to avoid the last US-led “great recession” in 2008. He may need to draw on those lessons sooner than we’d like.
It isn’t just the effects of climate change that could destabilize the financial system, it’s also fossil fuel assets losing value. The good news is that central banks can fix it.