Anti-Capitalist Sentiment (with some morality)

[wufwugy]

Interesting. Australia has arguably the most well-run economy in the world, merely due to the central bank keeping nominal growth steady. Y'all hardly get recessions anymore because of that

[!Luck]

Interesting. Australia has arguably the most well-run economy in the world, merely due to the central bank keeping nominal growth steady. Y'all hardly get recessions anymore because of that

Nothing to do with it being resource rich and china's insatiable appetite?

[wufwugy]

Nothing to do with it being resource rich and china's insatiable appetite?

This is probably the most credible and succinct article I can find on the topic. Australia and central banking are two topics that don't get enough coverage. Yglesias mentions several ways that Austrailia's boom doesn't correlate well with exports.

http://www.slate.com/blogs/moneybox/...ic_theory.html

Globally, monetary policy correlates with booms (and busts) more than just about anything other than supply shocks like with oil (a monetary shock is also a supply shock). This is apparently in line with what the textbooks teach as well

The more I learn about it, the more fiscal issues just don't seem to matter. For example, when comparing stimulative fiscal policy between US and EU nations, there is virtually no correlation with economic growth, but there's a ton when correlated with monetary stimulus. I honestly believe that so-called "targeting the level" in central banking will usher in a new era of the economy. Australia appears to be the first example of a country that does that (or close to it), and we can see the impact it has when they overshoot inflation when needed to maintain the level