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Richard Holden

This Month

It’s just absurd to think in the face of new election laws that Clive Palmer is going to say “OK, I’ll just get of showbusiness.”

Campaign finance laws could reduce not increase political competition

The community independents are right that this legislation is too important to be rushed through parliament in the final two sitting weeks.

Treasurer Jim Chalmers with US Treasury Secretary Janet Yellen in Washington last month.

An OECD global tax deal is close. Australia should jump on board

It wasn’t a good look for Australia to be on the world stage at last month’s IMF meetings as a noted holdout on a crucial international agreement.

Trump’s win shows voters want lower prices at any cost

The hard truth for Labor is that inflation is kryptonite for centre-left governments, and Anthony Albanese’s record on prices is very similar to Joe Biden’s.

If you’ve been wondering why services sector inflation in Australia is running at 4.6 per cent while goods inflation is at 1.4 per cent, Baumol’s cost disease is the answer.

How a 5¢ Tesla explains the problem with inflation

A fundamental economic truth explains ever-rising services inflation and why it’s a big problem for governments.

October

Overall, Australia’s COVID management was a huge success

Where we succeeded, it was the result of good institutions and good decision-making. But that’s not to say we didn’t stumble.

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A conscious decision by Michele Bullock and Andrew Hauser to balance inflation and unemployment.

Why interest rates will not fall soon – or by much when they do

Rising demand for investment capital to fund things like the green revolution will keep the price of money higher than it was.

“Matching algorithms” are used in real-world markets for organs, medical residents and university placements.

The algorithm that decides what uni course you get

Year 12 students applying for university this year will be allocated to courses based on a famous algorithm called “deferred acceptance”.

As Nobel Prize winners prove, strong institutions are good for us

The 2024 gong in economic sciences went to Daron Acemoglu, Simon Johnson and James Robinson. Their studies have vital lessons for today’s democracies.

The best tips for investing in markets (from economists)

Buy stocks when prices are low compared to dividends, and sell them when prices are high compared to dividends. Simple, right? But there’s always room for ambiguity …

September

The answer to our housing crisis is three letters: EBA

For all the focus on the illegal activities of the CFMEU, it’s their legal activities that have played a starring role in our housing affordability crisis.

How Australia crushed the COVID curve and lost the race

This country had one of the best-designed economic responses in the world, and one of the worst vaccine procurement processes.

We’ve become addicted to funding our sovereign research capability through international student income. In a time of global uncertainty and upheaval this is a huge strategic risk. I

There is a much better way to fund universities’ R&D spend

The damage that international student caps would do to our sovereign research capability can be addressed by fully funding research overheads.

Bank profits are the price of trust, and bitcoin proves it

One way to think about part of the profits that banks make is that it’s the cost of providing trust. But first you need to understand how blockchains work.

RBA governor Michele Bullock.

Why is the RBA acting scared of Jim Chalmers?

The governor and deputy governor’s dangerous signals of non-independence threaten the secret sauce of central banking.

Subsidies under Anthony Albanese’s Labor government, and the previous Morrison government, have driven up childcare prices.

The case for making childcare costs tax deductable

Government contributions will again increase demand without boosting supply. No wonder fees keep rising.

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August

 The statistical tools of the credibility revolution are particularly important for informing public policy.

The two words you should always treat with caution in business

Sentences which begin “Studies show...” are often followed by a description of a correlation interpreted as if it were a causal relationship - when it’s not.

Why people really hate inflation, but politicians don’t get it

Prices are about 15 per cent higher than when the Albanese government was elected. People just hate that. The more interesting question is, why?

Governor of the Reserve Bank of Australia Michelle Bullock during yesterday’s news conference.

Bullock talks tough, but board can’t stomach raising rates

The RBA has squibbed again this month. With long-run credibility on the line, it needs to focus on getting inflation inside the target band.

July

Why is Australia doing well on income mobility relative to other countries? One big reason is tertiary education.

The land of the fair go is taxing social mobility

Australia’s antiquated over-reliance on income taxes means that if you do manage to succeed, then that success is taxed heavily.

Donald Trump at the debate: Joe Biden’s performance has obscured the serious flaws in Trump’s economic plans.

The economic consequences of re-elected President Donald Trump

Trump’s first-term tariffs did not crater the US or world economies. The same cannot be said for his far more ambitious plans the second time around.

Original URL: https://www.afr.com/by/richard-holden-p4yvjy