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Policy

Economy

Heute

Gas companies should supply the local market.

Daniel’s glaring emissions omission

Readers’ letters on the energy transition; university research; the pace of reform; and the performance of Olympic rowers

  • 1 hr ago

Yesterday

Reform has taken a back seat in recent decades.

Labor needs to listen to its reform legends again

The frequent references to reform heroes just underscore the message at the BCA dinner that government and business need each other.

  • The AFR View
The major driver of Australia’s rental shortage is not a surge in foreign students, but a sharp rise in households with spare rooms and home offices, experts say.

Blame WFH – not foreign students – for the housing shortage

The major driver of Australia’s rental shortage is not a surge in foreign students, but a sharp rise in households with spare rooms and home offices, experts say.

  • Michael Read
Productivity might not grab headlines quite like the theatrics of Question Time, but it is the number we can’t afford to ignore any longer.

Why dwindling productivity is a big deal for superannuation

Despite having one of the largest pension schemes in the world, the start-ups that can drive productivity aren’t getting the financial support they need.

  • Allegra Spender
Donald Trump and Kamala Harris during the debate. Tariffs are on the agenda of both candidates.

What Trump or Harris would mean for global markets and Australia

Tariffs are unlikely to have a direct impact on Australian trade, but changes to US trade policy may have a larger effect on our ambition to diversify our export base.

  • Susan Stone
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This Month

The rise in insolvencies is largely the economy getting back to normal after what was a very abnormal situation during the pandemic.

The ‘insolvency armageddon’ is all hype

Concern about the record number of company failures is not only overblown, but the surge in businesses going bust is probably a good thing.

  • Michael Read
Australia’s productivity has not recovered from the pandemic era.

Fix low productivity or get used to high inflation for longer

The economy is in an unusual bind. The only way out is to reverse Australia’s dismal productivity performance.

  • Paul Bloxham

Why shouldn’t Australia capitalise on its abundance of uranium?

Readers’ letters on the role of nuclear energy; horses at risk in violent protests; and new anti-money laundering and counter-terrorism financing laws that threaten to drive out accountants.

Chalmers’ RBA dilemma: how much Greens is too much for investors?

Former central bankers say foreign investors who buy Australian government bonds, equities and currency will pay attention to the political standoff over the RBA board.

  • John Kehoe

Surprise government spending blowout hits $70b

Treasury may have underestimated a state and federal government budget spending splurge by $70 billion, which a string of economists warn will add to inflation.

  • Updated
  • Michael Read
Aged Care Minister Annika Wells and Prime Minister Anthony Albanese announce the long-awaited aged care deal this week.

A reform to face the test of an ageing Australia

It is encouraging that the two main parties have tackled such a fundamental challenge to the nation in a bipartisan way.

  • The AFR View
The Chanticleer podcast features James Thomson and Anthony Macdonald.

Housing’s vicious cycle | US debate’s investor clues | Lithium rollercoaster

This week on the Chanticleer podcast, James and Anthony examine why housing is eating the economy, decipher what the presidential debate really means for investors, and explain why it’s a fascinating time for the lithium sector.

  • Updated
  • Anthony Macdonald and James Thomson
Reserve Bank governor Michele Bullock is stubborn in a good way.

Chalmers dumps his fiscal profligacy onto the RBA

The government has its foot on the spending pedal while the Reserve Bank tries standing on the brakes. There is no sign of the co-ordination that has been called for.

  • Michael Stutchbury

Hard truth behind soft inflation target

Readers’ letters on the timing of inflation targeting; the appeal of the teals; the energy transition; and Donald Trump’s focus on cats

The government is aiming to achieve the first legislated changes to the 1959 RBA Act that substantially improve the operational framework for setting interest rates.

There’s a straightforward way to clear RBA board logjam

An alternative structure for the new monetary-policy-setting board could satisfy Labor and the concerns of the Coalition and former governors.

  • Jonathan Kearns
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Danielle Wood.

Economists have lost their power. Here’s how to fix it

Economists can be a necessary “pain in the arse” in public debates. But policymakers have stopped listening, and the influence of the profession depends on providing practical advice.

  • Danielle Wood

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.

  • Richard Holden

Former RBA bosses oppose Chalmers’ board shake-up

RBA reviewer Renee Fry-McKibbin urges Treasurer Jim Chalmers to accept his rival’s final demand.

  • John Kehoe and Michael Read
Solar panels became objects of controversy under Future Made in Australia.

Industry policies can work if we carefully weigh the risks

There can be compelling reasons for governments to intervene with subsidies and other favours. But they can never be allowed to become blank cheques.

  • Danielle Wood
RBA chief economist Sarah Hunter.

Jobs boom fuelling inflation, RBA warns

The jobs market is still too strong, central bank chief economist Sarah Hunter says, with participation at a record high and very few workers getting laid off.

  • Michael Read