Peter Martin, Crawford School of Public Policy, Australian National University
The Conversation’s 2020 economic survey points to a dismal year, with no progress on many of the key measures that matter for Australians and an increase in the unemployment rate.
Australian businesses are demanding rates of return far higher than their cost of capital, but that doesn’t make those hurdles wrong.
Shutterstock
Businesses are reluctant to invest, but that might be because they know what they are doing.
When the cash rate hits 0.25% the governor will pause for breath. After that he will buy state and federal government bonds, pushing longer term interest rates down towards zero.
Shutterstock
In a speech broadcast live on the Reserve Bank website, the governor explained how quantitative easing would work. He won’t try it until the cash rate hits 0.25%.
MARTIN is helping the Reserve Bank see beyond its headquarters in Martin Place. And it’s open source, giving outsiders an insight into its thinking.
Shutterstock
MARTIN stands for “Macroeconomic Relationships for Targeting Inflation”. The bank’s new computer model says there’s much it can do to boost the economy after its cash rate hits zero.
The economy is weak, but it isn’t a crisis. Treasury Secretary Steven Kennedy addresses Senators on Wednesday.
Mick Tsikas/AAP
Peter Martin, Crawford School of Public Policy, Australian National University
Australia is becoming more like the United States. Increasingly, we invest overseas. Our domestic economy is weak.
Reserve Bank Deputy Governor Guy Debelle, Governor Philip Lowe, and assistant governors Luci Ellis and Michele Bullock at Friday’s parliamentary hearing in Canberra.
Lukas Coch/AAP
Australia has more to fear than most countries from a global trade and currency war. All eyes will be on the Reserve Bank governor Friday as he attempts to outline what might happen.
If you’re going to stimulate the economy, it’s wise not to wait.
Shutterstock
A bold government would have delivered stages one, two and three of the tax cuts at once. Boldness is what we need.
Jacqui Lambie with Centre Alliance senators, who threw their support behind the government’s $158 billion income tax cuts, guaranteeing the package will become law.
Sam Mooy/AAP
After a hectic first week for the new parliament, Michelle Grattan speaks with Deep Saini about Jacqui Lambie’s role in helping pass the government’s tax cuts, and a further cut to interest rates - now 1%.
Philip Lowe is grabbing a rare opportunity to push the floor under unemployment lower.
DARREN ENGLAND/AAP
Peter Martin, Crawford School of Public Policy, Australian National University
Philip Lowe is on the cusp of permanently changing Australia. He stands a good chance of being one of the best governors since the first, who ushered in the goal of full employment.
Two cuts in a row, and a good chance of more to come.
Brendan Esposito/AAP
By himself, Reserve Bank Governor Philip Lowe may not be able to keep us out of recession.
As uncertain as 2019-20 is, The Conversation’s team of 20 leading economists are in broad agreement that the outlook isn’t good. Scott Morrison and Treasurer Josh Frydenberg will also have to deal with the unexpected.
Wes Mountain/The Conversation
Peter Martin, Crawford School of Public Policy, Australian National University
The Conversation’s distinguished panel predicts unusually weak growth, dismal spending, no improvement in either unemployment or wage growth, and an increased chance of recession.
Road tested. Quantitative easing worked in the US, and can work even better here.
Shutterstock
Peter Martin, Crawford School of Public Policy, Australian National University
The Reserve Bank cut interest rates on Tuesday because we weren’t spending or pushing up prices at the rate it wanted. On Wednesday we might find things are worse than it thought.
Distinguished Professor of Economics and Public Policy, ANU Centre for Applied Macroeconomic Analysis (CAMA), Crawford School of Public Policy, Australian National University