Richard Holden

Bob Dylan

The next set of instructions handed to the Reserve Bank will have to be realistic. That might mean a big adjustment.

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Australia has two options to keep out of recession, neither of them easy. The government will have to abandon its determination to get the budget into surplus.

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Any interest rate cut on Tuesday could be supercharged by another move to give borrowers more money to play with. 

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Combined, APRA and the Reserve Bank are about to give households on $150,000 up to $120,000 more borrowing power.

Balanced budget

The state of budget-balance fetishism in Australia means political leaders promise to balance the budget, no matter what.

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When the Reserve Bank considers the numbers around inflation, it knows it has little choice but to act, says Professor Richard Holden.

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The media loves a victim, but sympathy for someone who won't spend what they've got because they're saving for their children is taking it too far.

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Inflation has barely been within the Governor Philip Lowe's target band his entire time in office. Zero inflation means he should cut now, before the election.

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When the Australian cricket team got caught in a ball-tampering racket, there were consequences. Our politicians do something similar, but get a pass.

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Governments are addicted to tax revenue from harmful activities. It is stopping them from doing what is in society's best interests.

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