This week in Editors’ Picks, we bring you a range of hot topics: from the uncharted waters of negative interest rates to the comeback of… Gangnam Style?
ECB slashes rates to below zero – James Chessell
Desperate times call for unconventional monetary policy instruments. This week, the European Central Bank brought a new meaning to “Down, Down, (rates) are down” in an effort to stimulate the economy. The negative deposit rate is a relatively contemporary policy, and may bring about microeconomic ramifications. Experts are debating whether this is a foreshadowing to a full scale QE stimulus package. If so, how will the RBA deal with QE measures around the world that are causing the AUD to appreciate?
Rebalancing act in two-speed economy – Annabel Hepworth and Rosanne Barrett
The state budgets reveal that Australia’s two-speed economy will narrow as Western Australia and Queensland’s growth falls while New South Wales and Victoria experience growth with the help of the property boom and increased retail sales figures.
Politics of pushing: Behavioural economics a revenue game-changer
This article gives us a glimpse of how the discipline of behavioural economics has been used by the “nudge” unit of the NSW government. Drawing insights from economics and psychology, a series of trials has proven successful in nudging people to “make superior choices that save governments and citizens time and money.”
A Fairer World Cup Draw – Gregor Aisch and Kevin Quealy
Socceroo fans sink in despair from the death draw of Spain, Netherlands and Chile in the World Cup draw. Guyon, a French mathematician has devised a way to draw groups that are more balanced. Is this a glimmer of hope that one day, football will understand the concept of giving everyone a “fair go”?
Australia charges towards a cashless economy – Adam Creighton
Adam Creighton summarises the data found in a Reserve Bank survey. The statistics confirm our decreasing reliance on cash and our growing penchant for a cashless economy.
Gag of the Week – The Economist
The majority of us are heading into exams and facing the temptation to procrastinate with the black hole known as the internet. The Economist recently analysed the time spent watching “Gangnam Style” on Youtube and just how productive we could have been, instead of procrasti-dancing.
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