Category Archives: Economy

MICHAEL KEATING. Why the coronavirus shouldn’t stand in the way of the next wage increase (The Conversation 26.5.20)

Wage increases are widely believed to pose a threat to employment. But this ignores their role in supporting demand growth. Instead, wage increases consistent with maintaining an equilibrium distribution of income are necessary to sustain economic growth and employment.

Posted in Economy, Politics | 1 Comment

MICHAEL WEST. The Virgin Brides: fate of airline on a knife-edge as bids lob and cash runs dry (MWM 19.5.20)

The government has tossed $130 billion at business, the corporate largesse is dripping all over the big end of town. Even highly profitable $8 billion property developers such as Mirvac are rolling in the free money, yet when it comes to Virgin … Continue reading

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JOHN TAN. Neoliberalism: IT’S TIME for progressive fiscal policies (Part1/2).

Central banks worldwide facegrowing criticism for putting money before people, for contributing to growing inequality and social disadvantage. But change is coming.

Posted in Economy, Politics | 2 Comments

TIM HARCOURT. Eight things we need to do for Corona recovery

Bill Kelty, the former Australian Council of Trade Unions (ACTU) Secretary (and my old boss) recently praised Prime Minister Scott Morrison in The Conversation and his: ‘Go big, Act fast and keep the lights on’ approach to Coronavirus.

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MICHAEL KEATING. When should the budget deficit be unwound?

Australia’s present budget deficit is unprecedented, but it represents an appropriate response to the recession. The resulting debt does not present a future problem, and the deficit should only be unwound as private demand recovers.

Posted in Economy | 10 Comments

JEFF BORLAND. Australia’s labour market – What is the damage? (Conversation 14.5.20)

After all the forecasts and speculation, now we know the worst. Today’s numbers from the ABS lay out the catastrophic impact of COVID-19 on the Australian labour market.

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RAY BRICKNELL. Solving the Morrison government’s Newstart problem

Having ditched the Holy Grail of a budget surplus, admitting in the process – in deeds if not in words – that unemployment is a bigger problem than government debt, the Morrison government now faces a serious quandary.

Posted in Economy | 12 Comments

GREG WOOD. Pretext Protectionists and Other Viruses

A growing list of countries is encountering unilateral trade restrictions as China becomes ever more prone to applying them for both protectionist and political reasons.

Posted in Asia, Economy, World Affairs | 4 Comments

SATURDAY’s GOOD READING AND LISTENING FOR THE WEEKEND

What people in other forums are saying about public policy

Posted in Economy, Politics | 3 Comments

MICHAEL KEATING. Update on the economic outlook

The government and its advisers expect this recession to be relatively short-lived, but the recovery may well be less complete than they anticipate and are planning for.

Posted in Economy | 3 Comments

JOHN HOWARD. Challenges for Australian research and innovation post Covid-19

Australia is looking to rebuild its industrial base to achieve greater self-sufficiency in manufacturing. But we are seriously under-investing in creating the engineering and technology knowledge and skills that will be required to achieve this outcome.

Posted in Economy | 2 Comments

MUNGO MACCALLUM. The false promise of a COVIDSafe economy

The latest catchphrase from our government spin doctors is a COVIDSafe economy – optimistic and reassuring. And, unfortunately, a cruel hoax, a contradiction in terms.

Posted in Economy, Politics | 3 Comments

ABUL RIZVI: Australia’s struggles with skilled temporary migration

Kristina Keneally argues that when we come out of the current crisis we should aim for a lower level of temporary migration to make sure “Australians get a fair go and a first go at jobs.” Scott Morrison says cutting … Continue reading

Posted in Economy, Public Policy, Refugees, Immigration | 4 Comments

NOEL TURNBULL. Should companies using tax havens get pandemic stimulus funds?

Denmark and France are blocking pandemic financial assistance to any firms registered in tax havens.

Posted in Economy, Politics | 2 Comments

SATURDAY’s GOOD READING AND LISTENING FOR THE WEEKEND

What people in other forums are saying about public policy

Posted in Economy, Politics | 1 Comment

ROBIN BOYLE. Flights From The USA Should Have Been Shut Down Earlier

Australia should have restricted arrivals from the USA on the 11 March, in the same way as it did for Italy. Failure to do so has caused extra immeasurable cost and trauma to the Australian economy and people.

Posted in Economy | 4 Comments

BRENDAN COATES & MATT GOWGILL. COVID-19 Employment Shock.

The sight of Centrelink queues snaking around the block past shuttered shopfronts in cities, suburbs, and towns across Australia leaves no doubt that COVID-19 is having a big impact on Australian unemployment. But just how big?

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GREG BAILEY. COVID-19 and Tax Havens

Now that three governments in the EU have announced that during the COVID-19 crisis they will give no government funding to companies registered in tax havens, we wait to see if this prohibition is continued after the crisis is over. … Continue reading

Posted in Economy, Politics | 4 Comments

MICHAEL KEATING. Covid-19 and inter-generational equity

The increase in public debt in response to Covid-19 will not result in an unacceptable debt burden on young people. Instead, anyone seriously concerned about inter-generational equity would support action to reduce climate change and to improve the availability of … Continue reading

Posted in Economy | 6 Comments

ABUL RIZVI: Coronavirus and Australia’s Population and Economic Directions

The coronavirus crisis brings to an end 20 years of high migration to Australia. On current policy settings, net migration in 2020 and 2021 will be close to zero, if not negative. Australia is looking at the biggest turning point … Continue reading

Posted in Economy | 17 Comments

SATURDAY’s GOOD READING AND LISTENING FOR THE WEEKEND

What people in other forums are saying about public policy

Posted in Economy, Politics | 2 Comments

MICHAEL KEATING. Economic Policy post Covid-19. Part 2.

Today I address (i) how best to support aggregate demand, and (ii) how quickly to restore budget balance. In Part 1 of this article yesterday I concluded that these are the two key issues for future economic policy.

Posted in Economy | 12 Comments

MICHAEL KEATING. Economic Policy post Covid-19. Part 1.

This article considers economic strategy post Covid-19. In Part 1, today, it is argued that the principal requirement will be to generate a faster rate of increase in aggregate demand, and that Morrison’s proposed business-friendly policy settings will not help. … Continue reading

Posted in Economy | 3 Comments

CHARLES SAMPFORD. Perils of Dichotomies and Perverse Incentives: from ‘essential’ jobs to hibernating c ompanies

In making and explaining major policies on the run, it is easy to slip into confusing dichotomies and create perverse incentives. Unsurprisingly, the Job Keeper program is one of them.

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JOHN TAN. Covid, Bonds and Quantitative Easing.

The Covid crisis is also producing winners and institutional bond investors are winning big. Quantitative easing added to conventional monetary policy is just what they want. And so is forward guidance.

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MICHAEL KEATING. Covid-19 and Future Fiscal Policy

Covid-19 will have a big impact on fiscal policy over the next few years. The Budget balance is estimated here to show a deficit equivalent to 4½ per cent of GDP this year and as much as 10 per cent … Continue reading

Posted in Economy | 3 Comments

IAN McAULEY. Arithmetic supports a policy of eradicating coronavirus

The numbers behind the spread of coronavirus in Australia are promising, but we should wait some time before considering any relaxation of social distancing and other restrictions.  

Posted in Economy, Health | 3 Comments

MICHAEL KEATING. Covid-19 and the Economic Outlook

The Government’s unprecedented cash splash to shore up the economy will save us from what could have been a much worse recession. This makes it doubly strange that the Government is so uncommunicative about the future economic and fiscal outlook … Continue reading

Posted in Economy | 3 Comments

SATURDAY’s GOOD READING AND LISTENING FOR THE WEEKEND

What people in other forums are saying about public policy

Posted in Economy, Health, Politics | 4 Comments

JAMES GRUBER. Australia May Get Lucky Again.

“Australia is a lucky country run mainly by second rate people who share its luck”, author Donald Horne proclaimed in 1964. Horne was being ironic and hated that people took it to mean that our country is somehow special or … Continue reading

Posted in Economy | 3 Comments