The shaping factors for the Australian economy and business over the next year were seen yesterday: China, the strength of the Aussie dollar and the federal government’s stimulus spending produced good and bad news for some leading companies and the economy generally.
Australian economy
Ross Gittins’ efficient markets furphy
Ross Gittins reckons libertarians and their evil theories, especially the efficient markets hypothesis, are to blame for the global financial crisis. Sinclair Davidson begs to differ.
Henry: Stimulus cut will kill jobs
The removal of the governments fiscal stimulus now would cost Australia 100,000 more jobs, Treasury Secretary Ken Henry has told the Senate Economics Committee this morning.
Australia: the Switzerland of the South Pacific
It’s Australia’s moment in the global economic sunshine, with strong job figures, and a rising market. “In lifting interest rates, the RBA has succeeded… the Harbour Bridge as the new Australian icon”, writes Michael Evans.
Stimulus isn’t money for nothing. Time to wind it back
Calls are mounting for the Federal Government to reduce its wide-ranging fiscal stimulus package as economists continue to upgrade the prospects for the Australian economy.
Spiralling dollar spells current account chaos
Standby for a good, old fashioned current account scare, as the Australian dollar continues to rise as it did last night in the wake of the Reserve Bank rate rise.
Stutchbury: Why Swan doesn’t want your applause
Wayne Swan should be lapping-up the news heralded by the RBA rate hike that the economy is back on track, says Michael Stutchbury. But the rest of the world’s finance ministers are still battling recession, and Swan would rather fit in with the cool crowd.
Colebatch: Good news for the economy (if not your mortgage)
Many Australians have become too used to artificially low interest rates and government gifts to see that the RBA’s rate hike is actually good news for the economy.
How the RBA stole Christmas
The RBA raised interest rates to 3.25%, and business isn’t happy, despite indications the economy is back on track. With Christmas just around the corner, will the hike put a damper on consumer spending splurges?
Rates up, more to come
The rate rises have begun, with RBA today lifting its cash rate 0.25% up to 3.25%. Is the Australian economy officially back on track?
Your Say: Daily Mail readers' feedback: Disaster and the media
Crikey readers weigh in on how the media copes with the natural disasters besetting our Pacific and Asian neighbours and the messy climate change debate continues.
Why Swan was right on stimulus
It made sense for policy makers everywhere to use all available counter-cyclical tools in an urgent attempt to lessen the serious risk of economic disaster, says Rory Robertson. But the economy story is not all good.
Crikey Says: The tongue twisting tales of the RBA
What the Reserve Bank of Australia Governor Glenn Stevens said yesterday about interest rates and the economy and what others heard him say are two very different things.
Swan: Budget deficit $5 billion lower than expected
Treasurer Wayne Swan says that Australia’s underlying cash deficit is $27.1 billion, which is significantly lower than the $32.9 billion blowout forecast in May. As Peter Martin explained recently, the RBA’s currency windfall has been a big help.
Glenn Stevens alert but not alarmed
The RBA Governor basically reckons the economy is in good shape, the banks are fine, and rates will rise when we think the economy is good and ready.
RBA gets ready to jack up rates
It’s now clear the Reserve Bank’s priorities have shifted from the health and strength of the financial system, towards the first rate rise to come.
Foreign buyers blow out the housing bubble
The causes of Australia’s ever-inflating housing bubble are many but one hasn’t received a lot of attention: the influence of overseas buyers since the government relaxed its foreign property investment rules.
Political economy: the ‘two-speed’ economy is back
Although Australia appears to have dodged a bullet in the global financial meltdown, the economic situation across the country is far from even, writes Henry Thornton.
How Kevin Rudd saved 200,000 Australian jobs
The OECD has released a glowing report for the Federal Government’s stimulus package, estimating the economy will benefit for another decade and up to 200,000 jobs have been saved from the axe.
Political economy: happy Christmas Australia!
Yesterday, there were two important pieces of economic news that were overshadowed by the Telstra story. The release of the Reserve Bank’s board meeting notes — and the margin creep of the banks.
It’s (still) hard being a bear: good economic theory
While the financial rescue has worked, the expected recovery afterward can’t happen — because there’s almost no-one left who will willingly take on any more debt, writes Steve Keen.
Chris Bowen is very, very wrong on executive pay
Part of the reason that executives are paid so much is because of their ability to make their jobs sound far more complicated and difficult than they actually are.
Political economy: underemployment — what does it mean?
Now its official — a staggering 14% (or so) of Australia’s workforce are unemployed or underemployed, writes Henry Thornton. What a huge waste of resources.
VIDEO: Keating the reason we’ve avoided recession, says Abbott
The fight to take responsibility for Australia’s good economic fortune continues. In today’s Australian, John Howard tells off Kevin Rudd for his bipartisanship on the issue. Here, Tony Abbott credits Paul Keating … and Howard’s support role.
Rudd agenda backed by jobless stats
The Australian economy has again shown its resilience with the unemployment rate last month steady on 5.8%, where it has been since June.
