Modern Monetary Theory allows governments more freedom to run deficits, freedom the Australian government might need.
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.
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
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.
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.
Historically those nominated to the US Federal Reserve board have had distinguished credentials. Donald Trump favours nominees that agree with him.
US Federal Reserve
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.