NewsBite

Richard Holden

February

Treasurer Jim Chalmers says the reforms to the RBA will improve its decision making process.

Bullock and the board playing dice with Australia’s economy

The Australian public needs more than a good luck charm to finally tame inflation and our ongoing cost-of-living crisis.

Ross Gittins

Ross Gittins’ rebuke of economics today is wrong, silly and offensive

Ross Gittins is a legend of Australian journalism. But his column on Monday was a shocker. I guess even legends can be wrong.

LNG tankers.

How Australia’s gas boom turned into a nightmare

Our nation exports gas – but now we’re paying the price as a result of a huge and entirely predictable bipartisan policy failure.

January

President Joe Biden walks to speak in the Rose Garden of the White House in Washington.

Albanese must learn from these 3 mistakes of Bidenomics

If the prime minister doesn’t change his approach quickly he will face the same fate as the outgoing US president. Booted out of office, and with a legacy he’ll regret.

The usual suspects are putting political pressure on Michele Bullock to deliver pre-election rate relief next month.

Reserve Bank should not bow to political pressure for February rate cut

Giving in to the pile-on by Labor-aligned commentators calling for cuts would be a bad look and would damage the central bank’s credibility.

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The treasurer has been clear that he believes in something different to—he might say “beyond”—the Hawke-Keating-Clinton-Blair economic model. A “values-based capitalism.”

No Christmas rate cut because Chalmers fought economic laws and lost

The treasurer made a bet he could spend expansively but still see multiple interest-rate cuts from the Reserve Bank before the next election.

December 2024

When Jones speaks of Google having very large market share in search as if it’s a bad thing one naturally wonders what kind of action he has in mind.

No Minister Jones. Big is good for consumers in the digital economy

The default idea that new regulation should aim at reducing the market shares of tech companies is old economy thinking.

Personalised pricing is becoming more common.

Why price discrimination can be a good thing

The online age may make it easier for companies to predict what we’re willing to pay. But it also makes it easier for us to share stories of nasty corporate behaviour.

November 2024

You tell me what the cash flows of a toll road are going to be for the next 50 years.

Unlisted assets mask awkward questions about super governance

We need to be sure that on valuations, trustees are not conducting some tick-a-box exercise and playing with the retirement savings of members.

The economics behind ‘credible threats’

Good strategy involves knowing the game, including your opponents, and committing to a strategy.

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 2024

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 2024

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.

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