Today
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
- Opinion
- 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
- Opinion
- Australian economy
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
- Exclusive
- Interest rates
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
- Opinion
- Economics explained
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
- Opinion
- Productivity Commission
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
Yesterday
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
This Month
Greens demand RBA keeps power over how banks lend
The minor party wants to retain laws that allow the central bank governor to tell banks how to lend money and that give the government a veto over interest rate decisions
- Updated
- Michael Read and John Kehoe
Political factors won’t divert RBA from its inflation goal
Readers’ letters on the Reserve Bank’s policy goals; Victoria’s short-term rental tax; bypassing university; Qantas service; and gas in the energy transition.
- Opinion
- Interest rates
We will all pay the price for RBA board reform failure
More expertise on the central bank’s board could help avoid an unfortunate repeat of Philip Lowe’s pandemic-era guidance that interest rates were not expected to rise until 2024.
- John Kehoe
- Exclusive
- Interest rates
Coalition to kill Chalmers’ RBA board overhaul
The Coalition will block Jim Chalmers’ attempt to create a new specialist interest rate-setting board at the RBA after the government slammed the central bank.
- Michael Read and John Kehoe
- Opinion
- Australian economy
Labor has targeted the right housing supply side solutions
The key now is execution and accountability across all levels of government to give more young Australians the opportunity to share in the dream of home ownership
- The AFR View
- Exclusive
- Inflation
Inflation is ‘smashing’ incomes more than interest rates are
Inflation and taxes are eroding household incomes by triple as much as interest rates, undermining Jim Chalmers’ claim the RBA is hurting the economy.
- John Kehoe and Michael Read
Government-funded jobs are booming but we’re not getting bang for buck
Productivity across the public service and government-funded industries like health and education has crashed to an 18-year low.
- Michael Read
- Opinion
- AI
Australia must become an AI powerhouse, or be left behind
Artificial intelligence presents a significant opportunity for Australia’s economy, but has been largely ignored – and underfunded – in the political rhetoric.
- Casey Flint
- Opinion
- Monetary policy
The RBA isn’t hammering anything – it’s kept stability for decades
We should be out celebrating. Even as inflation blew past 7 per cent, the RBA’s targeting model has kept the spiral of inflationary expectations in check.
- Peter Downes
- Opinion
- Australian economy
Rate decisions have to follow the data, not the dogma
Leading economic indicators have to be our guide, and they are all pointing towards an avoidable recession.
- Craig Emerson
- Opinion
- Australian economy
Why is the RBA acting scared of Jim Chalmers?
The governor and deputy governor’s dangerous signals of non-independence threaten the secret sauce of central banking.
- Richard Holden
RBA pays price of Labor spending
Readers’ letters on the tension between Treasurer Jim Chalmers and the Reserve Bank over interest rates and inflation; Penny Wong’s speech at The Australian Financial Review Asia Summit; and domestic gas supply.
Record government spending sparks taxpayer-backed jobs boom
Of the 209,000 jobs filled in the six months to June 30, about half were classified as public sector, but there are questions about whether this is best for the economy.
- Ronald Mizen
