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Economics explained

This Month

Jim Chalmers.

Deeming rates on hold in budget to woo pensioners ahead of poll

When the rates are increased, it is equivalent to saying the pensioner is earning more on their private assets and therefore needs less welfare support.

February

 Jon Orszag.

FTI Consulting reels from staff exodus after rainmaker launches rival

The firm fired Jonathan Orszag in 2023 in a dispute over profit-sharing and control. He has since taken potentially tens of millions of dollars of business with him.

December 2024

Chinese Premier Li Qiang.

The four charts that show what’s wrong with China’s economy

Key indicators reveal the challenges facing Chinese policymakers as they gather to deal with the task of balancing short-term stimulus with longer-term reforms.

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

The economics behind ‘credible threats’

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

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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.

Can you pass HSC Economics?

Can you answer the hardest HSC economics questions? Have a go

We found 10 questions that most economics students couldn’t get right. Put yourself to the test with our interactive quiz.

October 2024

“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”.

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.

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.

August 2024

 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?

Original URL: https://www.afr.com/topic/economics-explained-6gwd