Category Archives: Macroeconomy

Krugman slams S&P over US downgrade

Posted on August 6, 2011 by Gene Tunny

Rating agencies such as S&P and Fitch, which issued a bizarre negative outlook for Queensland not long ago, really have no idea about macroeconomics or public finance. Nobel prize winning economist Paul Krugman has a brilliant piece slamming S&P over … Continue reading →

Posted in Macroeconomy | 1 Comment

Markets over-react as usual

Posted on August 3, 2011 by Gene Tunny

The 2008 financial crisis shattered any illusions I had about the rationality of financial markets, which appear to consistently over-react to new information, even if it is trivial compared with the long-run trends that are at play. Hence I am … Continue reading →

Posted in Macroeconomy, Mining | Leave a comment

20% of Queensland youth not fully engaged (i.e. in full-time work or study)

Posted on July 30, 2011 by Gene Tunny

The slowdown in Queensland’s economy since the financial crisis has disproportionately affected young people (aged 15-19), many of whom are obviously waiting for the good times to return rather than go to TAFE or university. The chart below is from … Continue reading →

Posted in Education, Labour market, Macroeconomy | Leave a comment

Fitch’s negative outlook for Qld is bizarre

Posted on July 27, 2011 by Gene Tunny

Fitch Ratings’s negative outlook for the Queensland economy would only make sense if the US really does have an economic armageddon following the possible (though unlikely) failure to lift the US Government’s debt ceiling and this depresses the global economy. … Continue reading →

Posted in Cairns, Gold Coast, Macroeconomy, Mining | 4 Comments

Qld Treasury remains optimistic about economy

Posted on July 17, 2011 by Gene Tunny

Despite the bad economic news coming out of the US (i.e. the potential for a double-dip recession), and the ongoing  troubles in Europe, Queensland Treasury, rightly in my view, remains optimistic about Queensland’s economic prospects in its latest Queensland Economic … Continue reading →

Posted in Macroeconomy | Leave a comment

Queensland investment boom on its way

Posted on July 12, 2011 by Gene Tunny

From this great chart in the new Queensland Infrastructure Plan (p. 23) it appears that around $40 billion of investment projects were committed to over January to March this year: The Queensland economy is set for strong growth over the next … Continue reading →

Posted in Macroeconomy, Mining, Queensland Government | 1 Comment

Queensland has to make the biggest adjustment to carbon price

Posted on July 10, 2011 by Gene Tunny

Queensland will have to endure a much larger economic adjustment in response to the carbon price than other States, in large part because of the need to reduce fugitive emissions from coal mining and emissions relating to aluminium smelting, which uses huge … Continue reading →

Posted in Climate change, Macroeconomy, Mining | 2 Comments

Media over-reacts to jobs data

Posted on July 7, 2011 by Gene Tunny

Media reports such as “Robust jobs growth in June shows economy in ‘reasonable health’” that are based on monthly movements in the ABS Labour Force Survey employment estimates are often meaningless. This is clear from the wide confidence intervals surrounding monthly … Continue reading →

Posted in Labour market, Macroeconomy | 2 Comments

To boost productivity, Government should first cut wasteful spending

Posted on July 1, 2011 by Gene Tunny

Treasury Secretary Dr Martin Parkinson is right to argue for a new wave of reform to boost productivity. Hopefully he also recognises that one of the best things governments can do to boost productivity is to cut wasteful spending and … Continue reading →

Posted in Budget, Macroeconomy | 1 Comment

Swan rightly dismisses GFC II talk

Posted on June 27, 2011 by Gene Tunny

Deputy PM/Treasurer Wayne Swan was in fine form today when he cut off Sky News’s Kieran Gilbert’s talk about a second global financial crisis (GFC): I don’t like that sort of talk about a second GFC. Yes, there are challenges … Continue reading →

Posted in Macroeconomy | Leave a comment