It now appears that National is going to scale back its tax cuts (ht Big News, Kiwiblog, The Standard) – stating that poor economic conditions have made larger cuts uneconomical. There are two ways I can read this: The economy is only temporarily weaker so we can cut taxes more later, The economy is structurally […]
100 basis points slashed by the Reserve Bank of Australia. There cash rate is now 6%. A 50 basis point cut was expected, 75 seemed possible, 100 is epic. At the start of the recent freeze in credit markets a 75 basis point cut by the RBNZ seemed highly unlikely – but possible. Now a […]
A large debate in economics stems from the idea that there is a price asymmetry in the economy. What this implies is that prices are more flexible in one direction (up or down) then they are in the other direction. The commonly provided example is petrol prices. People feel that when crude oil rises in […]
That is the topic of my Dom Post article this week.
Source (Phd Comics)
This was the feeling I got from Justin Wolfers at the Freakonomics blog and Dani Rodrik on his blog. Both of these authors seemed to imply that our profession has: failed to explain in clear language just what it is that credit markets do, and hence why it is so important that we fix them […]