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Keywords: Inflation

  • ECONOMICS

    Why debt forgiveness may be inevitable

    • David James
    • 25 July 2022
    3 Comments

    Monetary authorities are caught in an impossible situation. Inflation is rising: it is over 5 per cent in Australia and over 9 per cent in the United States. Inflation is often seen as a way out of excessive debt because it erodes the real value of money and therefore the real value of the debt. But what is increasingly being discussed are ways to cancel the debt.

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  • INTERNATIONAL

    Stray thoughts: A more powerful lens

    • Michael McVeigh
    • 18 July 2022

    If there is another civilisation out there peering into the skies like us, what would they see as they catch a glimpse of life on Earth in the 21st century? I wonder what they would make of our preoccupations, and what they might see through their powerful lenses that we ourselves cannot? 

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  • ECONOMICS

    Rising interest rates point to a larger problem

    • David James
    • 28 June 2022
    1 Comment

    The question that should be posed is how effective has the Reserve Bank been at ‘managing’ the economy and financial system? ‘Not very’, has to be the answer. Not that the RBA is alone. The same pattern has been seen across the developed world. Central banks have one weapon at their disposal, the cost of money (the interest rate), and there is not much evidence they have used this tool to make their systems sustainable. Mostly, they have made matters worse. 

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  • AUSTRALIA

    Stray thoughts: On battlers

    • Andrew Hamilton
    • 20 June 2022
    1 Comment

    On social media, business cards and the bottom of emails nowadays you will often find a bracket with people’s preferred pronouns (he/him or she/her or they/them). Without fanfare, gender neutrality has slipped into our 21st century speech and our unconscious, and it is only when we are confronted with the gender specific language that we realise how we’ve changed. 

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  • AUSTRALIA

    Deliver us from our necessities

    • Andrew Hamilton
    • 16 June 2022

    After the Election media focus has now switched from the fresh personalities and style of the new Government to the difficulties that face it. These include the financial pressures created by heavy debt and inflation, the constraints imposed by pledges made before the election, an energy crisis, international conflicts and their effects on trade, and differences within the Party. Faced by such challenges the Government is unlikely to be able to fulfil its promises and its supporters’ hopes.

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  • ECONOMICS

    Can financial fictions survive reality?

    • David James
    • 31 May 2022
    2 Comments

    As commodity prices and inflation soar in the ‘real’ world we may be witnessing a prelude to another 2008-style crisis triggered by the foreign exchange markets. The risks certainly look similar and can be described with a simple question. Can the fictions produced by out-of-control financial actors survive reality? 

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  • AUSTRALIA

    Big ticket promises won't help our hidden millions

    • Claire Victory
    • 19 May 2022
    1 Comment

    There is an Australia that many people seldom encounter and its citizens number in the millions. These citizens live in all cities and regional towns, often in sub-standard yet costly housing, and struggle to survive week to week on low wages or inadequate government assistance.

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  • ECONOMICS

    Out-of-control house prices requires a different approach

    • David James
    • 11 May 2022
    4 Comments

    In purely economic terms, the upcoming Federal election is extremely unusual. The shut down of the Australian economy for almost two years because of health measures really has no precedent in our history. Only war can produce that type of shock. The Federal government’s financial response was as extreme as the state of emergency measures, including a sharp increase in Australian government debt. It remains to be seen, however, if the government gets much credit for injecting so much free money into the economy. It is unlikely.

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  • ECONOMICS

    Supply to survive

    • Julian Butler
    • 31 March 2022

    In 2020 as the Covid-19 pandemic raged globally, as Australia shut its borders and some states shut in their people, massive government income support was introduced. The government was a little slow coming to recognise the need for such measures. Once they had, they wanted the support rolled out as quickly as possible. Frydenberg, Scott Morrison and their colleagues recognised that a demand side boost was absolutely necessary to sustain economic activity. The government was uncomfortable, though, with this approach.  

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  • ECONOMICS

    How will Russia sanctions impact the global economy?

    • David James
    • 22 March 2022
    1 Comment

    Russia’s invasion of Ukraine has led to severe financial sanctions being imposed on the country that are likely to have lasting consequences. Problem is, they may not be the ones the sanctioners are expecting. They may even come to regret what they have done.

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  • ECONOMICS

    What will rising interest rates mean for wealth inequality?

    • David James
    • 01 March 2022
    3 Comments

    Australia’s Reserve Bank mainly concentrates on keeping inflation within an acceptable range and maintaining a high level of employment. Social equity has never been considered to be part of its mandate. It should be. Interest rates have been the biggest cause of economic and social division in Australia, not just between rich and poor, but also between older and younger generations. 

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  • AUSTRALIA

    Gone to graveyards every one

    • Andrew Hamilton
    • 10 November 2021
    11 Comments

    Aficionados of United Nations Days and Weeks will know that this is the Week of Science and Peace. In the middle of it, perhaps deliberately and certainly paradoxically, sits Remembrance Day. Initially called Armistice Day, it marked the end of the First World War and of the industrial scale killing involved in it. The events of 1918 and what they might say about the relationship between war and science merit reflection today.

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