I had the privileged opportunity to attend the David Finch lecture at the University of Melbourne two weeks ago. Amidst many academics and esteemed guests, Mr. Richard Koo from Nomura Research Institute presented his lecture about Japan’s burst asset bubble, and its lessons which are now applicable to many of today’s troubled economies. Koo asserted that the problem was unlike the textbook-typical case of recession. Instead, countries like the United States, the UK, Spain and Ireland were suffering from what he called a ‘balance sheet recession’, akin to what Japan suffered from the 1990s through to the mid-2000s.
In this week’s Editors’ Picks, we continue to monitor news surrounding the Australian budget deficit; we look at how the budget fell through, and new proposals to combat the situation. We also consider how changing the minimum wage rate may impact on employment and how to cope knowing a marketing crash is inevitable.