Category Archives: Macroeconomy

Paradox of Thrift in recessions and depressions

Posted on April 4, 2020 by

The Australian’s economics editor Adam Creighton is today advocating for public sector wage cuts by Australian governments, a policy which may be morally virtuous but would be economically damaging in this time of economic contraction, in my view (see Coronavirus … Continue reading →

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The Fast Depression – 10 million newly jobless Americans in just two weeks

Posted on April 3, 2020 by

It is hard to overstate how rapidly economic conditions are deteriorating in economies affected by coronavirus, most particularly in the United States, which is seeing hitherto unbelievable numbers of people filing for unemployment benefits (see chart below). The 6.6 million … Continue reading →

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Coronavirus policy responses with Joe Branigan – latest Economics Explained episode

Posted on April 2, 2020 by

Last night I recorded an Economics Explained podcast interview with my good friend and former Treasury colleague Joe Branigan of Tulipwood Economics on the economic impact of coronavirus and the economic cost of responding to it. Use these timestamps to … Continue reading →

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Gov’t faces huge funding challenge as it puts economy on life support

Posted on March 31, 2020 by

The federal government’s latest rescue measure, the JobKeeper Payment, estimated to cost $130 billion, may well be justifiable, given social distancing measures have shut down large parts of the economy for an indeterminate period, and I recognise the need to … Continue reading →

Posted in Budget, Macroeconomy, Uncategorized | Tagged , , , , , , , | 6 Comments

Businesses in “survival mode” says CCIQ Chief Economist Dr Marcus Smith

Posted on March 27, 2020 by

THis afternoon, I caught up via Zoom with CCIQ Chief Economist Dr Marcus Smith to discuss the extraordinary coronavirus-related developments since we last spoke on Sunday. As Marcus notes early in our conversation, which you can listen to below, things … Continue reading →

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COVID-19 response with Nicholas Gruen – latest Economics Explained episode

Posted on March 26, 2020 by

Despite all the draconian measures already imposed by Australian governments, ABC health expert Dr Norman Swan thinks we still need to do more. Just after I woke up this morning, I heard him on ABC Breakfast suggesting an even wider … Continue reading →

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Just announced shutdowns mean hundreds of thousands now out of work (hopefully only temporarily)

Posted on March 22, 2020 by

While we knew something like this was coming, it was still awful when it did come. To contain the spread of coronavirus, from midday tomorrow (Monday), pubs, bars, clubs, and gyms will be forced to shut, and restaurants and cafes … Continue reading →

Posted in Macroeconomy, Uncategorized | Tagged , , , , , , , , , , , | 3 Comments