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Inflation fear is an inflated fear

Australia’s inflation rate has reached an all-time high since the GFC but what does this mean for the Australian public? Anna McBride explores inflation’s relationship with two areas of consumer interest – wages and interest rates – to determine whether its increase should worry us.

The development of monetary policy – Part 1

With the housing market slowing and wages stagnating, political pundits are calling for the RBA to cut rates, but what is the meaning behind these ideas? Conor Yung looks at the genesis of ideas on monetary policy to give you the context behind the business jargon.

Lessons learnt from the GFC and how to heed them

The Global Financial Crisis highlighted the shortcomings of the financial sector and its exposure to risk. Fuelled by the failures of financial regulators, governments and central banks, many lessons can be learnt from the GFC.

This article first appeared in Short Supply 2017 – check out the full magazine via the Short Supply tab at the top of this page!

The Fall of the Australian Dollar

Underperforming growth in China, improving economic conditions in the US, and the RBA’s recently announced cut in the cash rate to a record low of 2.75% have forced downward pressure on the Australian dollar – culminating in a loss of nearly 8% in value against the USD since mid-April. Crashing from its peak of $US1.10 in July 2011, the AUD has reached an 11 month low, with many analysts warning investors to brace themselves for further deterioration.

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Has inflation targeting become a sporting event?

At the time of writing, available odds for this Tuesday’s RBA meeting are $1.40 for rates to remain unchanged, $2.20 for a decrease of up to 25 basis points and then a respectable $19 for a cut between 25 and 50 basis points. Any increase in the cash rate pays $34 but putting money on that would surely be the equivalent of backing a horse with a broken leg – unless it is called Black Caviar perhaps.

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The World this week with ESSA

Hand picked selection of economics content from around the web.

This week: Austerity is supposed to reduce debt and stabilise recessions – but has it worked? Also why Australia’s macro policies have been successful, and the case for legalising prostitution.

ESSA, 14 October 2012

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The World this week with ESSA

Hand picked selection of economics content from around the web. This week: Europe, US election coverage, the RBA’s monetary policy and the cost of free range chickens. ESSA, 7 October 2012 World Economy Europe Greek Prime Minister Warns of Societal Collapse Like Weimar Germany; Citizens Storm Defense Ministry; – Global Economic Analysis Greece is politically …

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