Markets

CHART: Brexit may be about to add to this depressing global trend

If there’s been a prominent, consistent theme in the years since the global financial crisis, it’s been underwhelming levels of global economic growth. This is no better demonstrated by the chart below from Macquarie Research. It shows the International Monetary Fund’s (IMF) forecasts for global GDP from 2011 through to […]
CHART: Brexit may be about to add to this depressing global trend
Markets

That time Q&A tackled the problems with economic modelling

This was a piercing question from the floor to prime minister Malcolm Turnbull on this week’s Q&A: Both of the major parties have pledged to return to surplus in 2020-21, and say that their spending promises can be funded. Given that Treasury forecasts over the past years have fallen short […]
That time Q&A tackled the problems with economic modelling
Markets

A diabolical problem for the Australian economy, in one neat paragraph

Via Stephen Roberts, chief economist at Melbourne’s Alexander Funds management (emphasis added): … if the current trends in Australia’s labour market – soft employment growth driven by part-time jobs’ growth; falling hours worked; low and still declining wages growth – continue, as seems likely, inevitably the increasing constraint on growth […]
A diabolical problem for the Australian economy, in one neat paragraph
Markets

Chinese student enrolments are exploding in Australia

I keep reading in various parts of the world wide interweb rumour mill that the pace of Australian population growth is set to slow sharply. Hmm. I’ll gladly stand corrected here if needs be, but I’m not buying it. The latest Government data for the three months to March revealed […]
Chinese student enrolments are exploding in Australia
Markets

This Treasury modelling sets out how company tax cuts can grow the economy

The Turnbull government’s proposed cut to company tax, costing an estimated at $48 billion over a decade, is shaping up to be one of the defining issues of the coming election campaign. Treasurer Scott Morrison last night authorised the release of modelling which disclosed the government’s estimate of budget impact […]
This Treasury modelling sets out how company tax cuts can grow the economy
News

BUDGET 2016: Here’s what you need to know

Small businesses and middle income earners get the handouts in a federal budget that promises to control spending growth, make savings and keep chipping away at the deficit. The targets for revenue raising are welfare cheats, multinationals avoiding tax and the wealthy who use superannuation to park cash in a […]
BUDGET 2016: Here’s what you need to know
News

10 things you need to know this morning in Australia

It’s Thursday. You can do it. 1. Aussie Aussie Aussie, oi oi – steady on. Australia’s economy, now closing in on 25 years without a recession, is undeniably remarkable. The 3% rate of GDP growth in the 12 months to September surprised everyone. But Deutsche Bank’s Adam Boyton points out […]
10 things you need to know this morning in Australia
Markets

The ideal interest rate for every Australian city

In the years after the GFC and as the mining boom peaked, then-treasurer Wayne Swan was fond of referring to the “patchwork” nature of the Australian economy. There were also frequent references back then to the “two-speed economy” as activity in WA and Queensland accelerated, creating swathes of jobs and […]
The ideal interest rate for every Australian city
US

We tested an economic theory by trying to buy people’s Powerball tickets for much more than they paid

VIDEO: We asked people to sell us their Powerball tickets after the jackpot had risen to $1.5 billion. We offered more than the cost of the ticket. This seemed like a pretty good offer. They could buy a new ticket and pocket the extra cash to come out ahead. Since the odds of winning with the new ticket are exactly the same. However, a cognitive bias known as regret avoidance can make it difficult for people to choose the extra cash.
We tested an economic theory by trying to buy people’s Powerball tickets for much more than they paid
Markets

Here’s the confidence data Scott Morrison is so pleased about

On a range of measures, Australians have been feeling more chipper about things over the past four months. Treasurer Scott Morrison and his boss Malcolm Turnbull have taken note and are talking it up. Stubbornly low levels of consumer and business confidence have been a feature of the Australian economic […]
Here’s the confidence data Scott Morrison is so pleased about