Why credit rating agencies’ economic advice shouldn’t be trusted

Credit rating agencies have a poor track record when it comes to evaluating risk, writes… Imad Moosa, RMIT University The Australian government is using warnings from rating agencies like Standard & Poor’s Global Ratings (S&P), which placed Australia on a negative watch during the election, to make the case for passing budget measures.    In…


Why the Reserve Bank should resist calls to alter its inflation range

There are some good reasons why the RBA should retain its flexibility in managing inflation, writes… Saul Eslake, University of Tasmania For economists and others who ‘grew up’ being challenged to achieve low and stable inflation against the background of high and volatile inflation rates that emerged in Western countries in the 1970s (and persisted…


Morrison warns banks not to pass on new ‘user-pays’ impost to finance ASIC reform

Treasurer Scott Morrison has warned Australian banks not to pass on to customers the $121 million user-pays charge imposed on them to finance a strengthened Australian Securities and Investments Commission (ASIC), writes…. Michelle Grattan, University of Canberra The banks will pay for almost all the $127 million four-year package, which the government hopes will take…

Weekly Economic Recap: Spending away Australia’s Triple A rating

The IMF warns of secular stagnation while Moody’s ponders a credit downgrade for Australia if GST and negative gearing are not tackled, writes… Richard Holden, UNSW Australia in his weekly economic wrap. The big news this week was domestic. And it was about the big picture.   Australian unemployment came in better than expected at 5.7%, down 0.1%…

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