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Risk of overshoot on interest rates
The monetary policy of the RBA seems to have had little impact on inflation and the rate of unemployment over the period since 2002 – in fact, the impact seems to have been perverse. That is, the opposite of what was intended! Unless the RBA recognizes this, they run the risk of pushing interest rates […]
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Predicting an economic growth downturn
Economic forecasters don’t predict turning points and the Global Financial Crisis of 2008-09 was one of the many downturns not predicted. But in mid-2007 Charlie Nelson did predict a significant slowdown in Australia’s economic growth rate. He developed a scenario which included negative impacts from international and domestic factors which would result in a severe […]