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Policy

Economy

Today

Women see economics through a different lens to men.

Why women don’t stick with economics

Economic models of anything are founded on the assumption of Homo economicus. No sensible woman looks at this model and recognises herself.

  • Yanis Varoufakis
Few countries now have a birth rate above the replacement level of 2.1 children a couple, the level needed to keep a population stable.

Population decline will destroy the West as we know it

By 2100, the number of people worldwide will have peaked. The value of assets will drop and the incomes they generate will fall.

  • Dr Stephen Davies
Treasurer Jim Chalmers is preparing the May 14 budget.

Budget to fast-track investment approvals

Treasurer Jim Chalmers is close to finalising a package to get capital flowing for the stuttering energy transition and other Labor priority projects.

  • John Kehoe

Yesterday

Christopher Kent, assistant governor of Reserve Bank of Australia

Reserve Bank ponders the market plumbing

The Reserve Bank board is repurposing the financial system as its cheap pandemic funding is flushed out. It’s doing it as financial markets are only too happy to splash the cash.

  • Jonathan Shapiro
The net zero transition is going to change the picture of demand for capital.

Can Australia compete in the new post-inflation world?

The “new neutral” medium-term interest rate will make global competition for capital far more intense. The country needs to get ready for that.

  • Richard Holden
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The resilience of the housing market recovery could make the RBA reluctant to deliver cuts to the cash rate later this year, according to economists.

Population surge and smaller households fuelling home prices: RBA

The resilience of the housing market recovery could make the RBA reluctant to deliver cuts to the cash rate later this year, according to economists.

  • Michael Read
The US public believes prices will rise by 5.3 per cent over the next 12 months.

Australia is set to be the last country to escape inflation

The Economist measured inflation entrenchment in 10 rich countries. Australia tops the index, with Britain and Canada not far behind.

  • The Economist
The explosive growth in the $42 billion NDIS has helped propel federal government spending to near-record levels as a share of GDP

Almost one in three jobs created last year was for the NDIS

The growth in NDIS-related employment has masked the slowdown in private sector industries like construction, retail and manufacturing.

  • Michael Read

This Month

Daniel Kahneman, the author of Thinking, Fast and Slow.

The man who discovered people hate losing more than they like winning

Daniel Kahneman was one of the few psychologists to win the Nobel Prize for economics.

  • Andrew Leigh

March

The latest US economic data could be parsed to bolster either side of the rate pivot debate.

How economists interpreted US inflation data

The Federal Reserve’s key inflation metric has left economists as divided as ever on the timing of a US rate cut.

  • Timothy Moore
Chinese leaders’ anger may be a sign that Joe Biden’s approach is working.

Bidenomics is making China angry. That’s OK

Biden’s China policy is so tough that it makes me, someone who generally favours a rules-based system, nervous.

  • Paul Krugman
Jerome Powell

No need for Fed to rush rate cuts: Powell

The Federal Reserve chairman said February’s inflation data, released on Friday, was “pretty much in line with our expectations”.

  • Catarina Saraiva
Policymakers anticipate three rate cuts this year. Financial markets expect the first rate reduction in June.

US monthly inflation slows; consumer spending surges

Core inflation increased 2.8 per cent year-on-year in February, the smallest gain since March 2021, after rising 2.9 per cent in January.

  • Lucia Mutikani
Zara Stewart

Swifties boost February retail spending amid sector struggles

“Taylor Swift-inspired outfits and do-it-yourself accessories added to turnover in February,” the ABS said. But without the Eras Tour, spending was almost stagnant.

  • Ronald Mizen
The RBA is betting productivity will start to lift and help manage domestic cost pressures.

Small productivity rebound is nothing to celebrate

The productivity slump may have bottomed out, but it has happened because workers’ hours are being cut, not because businesses are investing, a leading economist warns.

  • Ronald Mizen
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Matt Comyn defied his comms team to talk tax.

Bank bosses who speak the truth on reform

Tax reform is the cornerstone of rebooting national economic performance because its benefits are so pervasive. Business leaders are rightly taking up the conversation.

  • The AFR View
Get ready for more expensive Easter eggs.

Why chocolate prices are up and could double by next Easter

RaboResearch expects global cocoa prices to settle around $US5900 a tonne, which is 124 per cent above the average price over the past five years. 

  • Ronald Mizen
Businesses spend big upfront with no guarantee they will have customers.

Those ‘obscene’ big business profits are actually our profits

The politicians and media who scapegoat big business ignore how the great bulk of their profits flow right across the Australian community.

  • The Parrhesian
The banks say that home owners have weathered the rate rise cycle very well.

Why interest rate pain is not so bad for home borrowers

The Reserve Bank’s 13 interest rate rises have curbed demand without tipping mortgage holders into big trouble.

  • John Kehoe

RBA faces ‘last mile’ bumps on the narrow inflation path

Taylor Swift’s record-breaking Eras tour drove hotel prices higher in Sydney and Melbourne and housing is still under pressure, but prices fell elsewhere.

  • Ronald Mizen