You know Australia’s in trouble when the Reserve Bank cuts interest rates. Last week, the central bank did precisely that, in belated recognition of the income recession that has struck. Gross domestic…
The policies Australia needs are being blocked in the Senate.
Lukas Coch/AAP
Much of the current political turmoil in Australia can be traced to Bill Clinton’s famous aphorism: “it’s the economy stupid” – in particular, the plunge in world commodity prices over the past few years…
There is a silver lining to the end of the mining boom.
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What is the new normal for the Australian economy? With unemployment rising, commodity prices reaching new lows, and confidence subdued, is the Australian economy prepared to handle offshore headwinds…
Could a Turnbull-Abbott partnership be the circuit breaker the government needs?
Lukas Coch/AAP
In the wake of Monday’s attempted Liberal leadership spill, Australian Prime Minister Tony Abbott clearly needs to do something to shore up support. He’s been offered all manner of unsolicited advice…
Selling reform to voters has proven challenging for the Prime Minister, but there are alternative options.
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The move to challenge the leadership of Prime Minister Tony Abbott, coming soon after the shock Queensland election outcome, has in some quarters been blamed on a lack of appetite for reform on the part…
The less surprised markets are on interest rate moves the better.
Paul Miller/AAP
Though markets had somewhat priced in an Australian interest rate cut yesterday, many analysts and commentators were still left surprised. The rate had not been cut for 18 months. Over that period commentary…
The relationship between PM and treasurer can make or break a treasurer’s reign.
Lukas Coch/AAP
For a number of reasons, now is not a good time to be Australia’s federal treasurer. The resources boom has lost its mojo, the economy is faltering and the dollar is falling along with the terms of trade…
Queensland’s debt: is it sky high, or under control? An economist shows what you need to know to judge for yourself.
AAP/Dan Peled
How much debt is Queensland really in? How much of that debt can past Labor governments bear responsibility for, and has the current Liberal National government cut or added to it? And how does Queensland’s…
To prevent future pain, the government can’t put off tough decisions on tax.
Lukas Coch/AAP
The government’s recent budget outlook (MYEFO) confirmed that the Australian government budget is rotten at the core. The government is hopelessly living beyond its means, with expenditure greater than…
It’s been a steady-as-she-goes year for Reserve Bank Governor Glenn Stevens.
Alan Porritt/AAP
The CAMA RBA Shadow Board is a project by the Centre for Applied Macroeconomic Analysis, based at the ANU, which asks industry and academic economists what interest rate the Reserve Bank of Australia should…
With the Australian dollar continuing to fall, the local economy is expected to rebalance.
Paul Miller/AAP
The CAMA RBA Shadow Board is a project by the Centre for Applied Macroeconomic Analysis, based at the ANU, which asks industry and academic economists what interest rate the Reserve Bank of Australia should…
A new report from the Parliamentary Budget Office could help Joe Hockey sell his budget.
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Growth in government spending on big-ticket items including Medicare, public hospitals and the aged pension is expected to be less than real GDP growth over the next decade, according to the latest report…
Global action to reduce emissions could threaten Australia’s coal exports.
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Australia’s economy faces grave threats from climate change, but the greatest threat is if we do not make a serious effort to reduce greenhouse gas emissions. It’s not just the physical impacts of climate…
Treasurer Joe Hockey is busy selling his budget to the electorate.
Joel Carrett/AAP
Consumer sentiment has tumbled to levels not seen since August 2011, in a post-budget drop economists say does not reflect the real state of the economy. According to the monthly Westpac Melbourne Institute…
Australia’s state premiers are avoiding a GST discussion.
Daniel Munoz/AAP
This past Tuesday was another bad day for Australian federalism: the Abbott government’s first budget announced the axing of the COAG Reform Council and the withdrawal of a promised A$80 billion from health…
The budget: more that we wanted, less than we need.
Lukas Coch/AAP
This week’s budget was clearly highly political. The question is what its economic impact will be. My overall assessment is that the Abbott government has burnt too much political capital for too little…
Is Australia on its own ‘Great Gatsby curve’?
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In the popular novel of F. Scott Fitzgerald, James “Jimmy” Gatz (The Great Gatsby) climbs from his poor, rural North Dakotan origins to New York’s high society. His parties are as glamorous as they get…
Treasurer Joe Hockey said it was time the ‘cashed up’ private sector started investing.
AAP/Alan Porritt
Governments have “run out of money” and the “cashed up” private sector needs to step up investment, Treasurer Joe Hockey said today as he outlined this year’s G20 agenda. “Too many tax payers’ dollars…