recession - Economics Students Society of Australia

recession

A collection of 10 posts

Inflation: A global crisis on the horizon?

Inflation: A global crisis on the horizon?

For the past 30 years, the Australian cash rate has declined, from 17.5% in the 1990s to 0.85% today. Record low interest rates have been great news for individuals wanting to borrow money – homeowners were able to pay less in mortgage and new homeowners were enticed into the

Fixing our gas woes to power Australia out of recession

Fixing our gas woes to power Australia out of recession

Australia’s National Covid-19 Coordination Commission (NCCC) has recently had its draft interim report leaked to the media. It centres around the Manufacturing Taskforce (a project which I discussed in my last article), which has been looking at solving how Australia might recover from the ‘Great Shutdown’ as a more

Helicopter Money: Unconventional Policy for Unconventional Times?

Helicopter Money: Unconventional Policy for Unconventional Times?

How should governments minimise COVID-19’s economic damage? As economies grind to a crawl, governments are (rightfully) pursuing aggressive expansionary fiscal policies to alleviate the likely upcoming recession. Although the necessity of bold, stimulatory fiscal policy is widely agreed on by academic economists, how that should be financed is less

The human condition: the economy's worst enemy

The human condition: the economy's worst enemy

Walk around Wall Street and it is almost impossible to find someone who is not educated at an elite tertiary institution. This begs the question, then, why does the economy bursts spectacularly like an over pumped balloon every once in a while? Whilst it is universally accepted that recessions reflect

The story of the real Australian economy

australian economy

The story of the real Australian economy

In a four part series titled ‘The Story of the Real Australian Economy’, Benjamin Wee seeks to tell the narrative of Australia’s current economic position and the issues facing the country in a seemingly uncertain future. The series will analyse the structural makeup of the economy and the detail

Debunking the paradox of thrift

Austrian economics

Debunking the paradox of thrift

John Maynard Keynes, during his work in the 1930s, popularised a concept taught in many macroeconomics classes known as the paradox of thrift, where he outlined the harsh consequences when individuals choose to save a greater proportion of their income in a recession. The logic employed by Keynes here is

The Great Recession that we dodged

The Great Recession that we dodged

Six months living on the other side of the world caused me to realise a lot about life in Australia. Some of the differences between our island home and the rest of the world are obvious, some are instinctive – but one subtle difference has mostly flown under the radar, with

Editor's Picks - 24 August 2014

Editor's Picks - 24 August 2014

This week in Editor’s Picks, we discuss textbook pricing, the misunderstandings of economics in politics, Australia’s next recession and take a look at the economics of the United States as well as extra-terrestrial beings. Why textbook cost so much – It’s Economics 101 Have you ever wondered why

economic forecasting

The Virtues of Contrariness in Economic Forecasting

Economists as a whole are notorious for their poor forecasting predictions, which is why the saying “economists predicted nine out of the last five recessions,” is so well known. Economic forecasting is no doubt a difficult task. There are those few economists who are known for ‘getting it right’ or

Koo’s Keynesian Key to the Balance Sheet Recession

balance sheet recession

Koo’s Keynesian Key to the Balance Sheet Recession

I had the privileged opportunity to attend the David Finch lecture at the University of Melbourne two weeks ago. Amidst many academics and esteemed guests, Mr. Richard Koo from Nomura Research Institute presented his lecture about Japan’s burst asset bubble, and its lessons which are now applicable to many