Almost all of the Reserve Bank’s new Term Funding Facility has ended up in the hands of big businesses. There’s a way to make sure small businesses get it.
We’re running out of interest rates to cut to keep the economy from sinking. Before the next recession occurs, we need to come with an effective approach to monetary policy.
The US Fed’s surprise rate cut might not achieve a lot. But it definitely sends a message the COVID-19 virus crisis is a really big deal.
Sweden’s central bank ways it will no longer invest in assets from governments with large climate footprints, even if the yields were high.
Shutterstock
The Reserve Bank of Australia says it’s prepared to ease monetary policy further if needed to stimulate the economy. But is the policy working when interests rates are so low?
“I think Australia has absolutely nothing to hide but cooperation will bring a cost”, says Michelle Grattan on the government cooperating with the inquiry into the Mueller inquiry.
Mick Tsikas/AAP
Peter Martin, Crawford School of Public Policy, Australian National University
If needed, Governor Lowe will cut rates to near zero, and then effectivly cut them further.
The most obvious reason for wage stagnation is the decline in unionisation over the past three decades. But you won’t hear that from government economists.
www.shutterstock.com
With a relatively low debt to GDP ratio, Australia was never at risk of becoming Greece. But Germany, with negative interest rates and scant prospects for economic growth, is an open question.
Every few years, the government hands the Reserve Bank a new set of instructions.
Shutterstock
The next set of instructions handed to the Reserve Bank will have to be realistic. That might mean a big change.
Our standard economic model says when labour is scarce, the cost of labour should increase. But something is broken. This is not happening.
www.shutterstock.com