Usually when jobs and wages are rising, it’s a good thing, but right now they may signal higher odds of a nasty recession – and Americans aren’t ready for it.
Emerging economies such as Brazil, Egypt, India, and Indonesia are vital global players. Saving them from possible debt default may improve the world’s resilience against the looming global recession.
Steven Hamilton, Crawford School of Public Policy, Australian National University
Policymakers were too complacent about inflation, and the global economy is paying the price. Australia’s resources mean it is better placed than most.
Amid a number of major crises, the world clearly needs radical change. But what will it look like? The desire to return to pre-pandemic ‘normal’ is powerful, but ‘normal’ is what got us where we are today.
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.