© 2019 by Henry Thornton. 

  • Grey Twitter Icon

To view older Political Economy related articles from Henry, and other correspondents of Henry, visit the archive of the original Henry Thornton site here:

http://pandora.nla.gov.au/pan/33415/20160803-0036/www.henrythornton.com/category5125.html?category_id=5

September 15, 2019

Everywhere central banks are reducing interest rates.  In some Eurozone nations bond rates are negative, which means (one assumes) that holders of bonds pay dividends to governments for the privilege of owning bonds.  Cash interest rates are near zero, an unprecedented state of affairs due to failure to raise rates during the long economic recovery since the Global Crisis of 2007-08. Now central banks are striving to keep this...

September 8, 2019

Stick to ‘tax and spend’ plan says Labor President Wayne Swan. An amazing statement reported on the front page in large print by the Weekend Australian. This seems to Henry a suicide note from the Labor Party, and good luck to them.  The government is not without its problems with household consumption still low and only resource exports and government spending keeping ‘growth’ in the black.  And if growth is measured on a per...

June 1, 2019

‘Everyone’ it seems is worried about inflation. Today I’d like to introduce you to a draft chapter of a book written by Pete Jonson, founder and frequent contributor to Henrythornton.com.  A major problem is that inflation is very damaging but now, after nearly 30 years, there are cries of ‘inflation is too low’. That is goods and services inflation, gentle readers, but what about asset inflation?

This blog presents the se...

May 24, 2019

Shortly after leaving the Reserve Bank I had some time to reflect the best way of conducting monetary policy. Treasury had tried ‘monetary projections’ that failed after money growth blew out with financial reform. The Reserve tried ‘the check list’, to general lack of acclaim. Finally I decided in 1990 the rate of inflation (eg the consumer price measure) was an appropriate operational target, as did Sir William Cole. It took...

May 20, 2019

This chapter addresses one of the most difficult issues in Macroeconomics, how to increase useful economic growth. While fiscal and monetary policies can derail growth if handled badly, new ideas applied to real businesses are the main source of increased economic growth.

*****************************************************

Australia’s Productivity Commission is one of Australia’s most golden public sector organisations. As off...

May 20, 2019

Like many other Australians I was stunned at the performance of the Liberal-National government on Saturday. Not entirely surprised, however. Several weeks ago, I said: ‘Federal Election on, 18 May, and the Thornton family is not conducting its regular election party due to dining with our friends from Malaysia. Here is a tip. Trump beat the favourite Hilary Clinton. British voters chose leaving the EU despite the clear expect...

April 14, 2019

Federal Election on, 18 May, and the Thornton family is not conducting its regular election party due to dining with our friends from Malaysia. Here is a tip. Trump beat the favourite Hilary Clinton. British voters chose leaving the EU despite the clear expectation that the 'elite' would vote to stay.  Could Scomo do it?  Still a long shot, but certainly not impossible.

Massive tax cuts and a reputation for fixing Labor st...

March 30, 2019

Budget day next Tuesday. Treasurer Josh Frydenberg is expected to announce a surplus (thanks to large exports of coal and iron ore), tax cuts and some nice bits of cash splash. Plus there is the possibility of a new coal fired power station in Queensland.  A nice package but polls remain solidly pro-Labor and it would seem to take an electoral miracle for the Libs and Nats to be in government by end May.

In the UK, the dogged M...

March 17, 2019

Shocking mass killing in New Zealand. Much grieving to be done and (we hope) gun policy to be greatly tightened. Our best wishes to survivors and loved ones of the dead and injured.

A two horse race may be won by either horse.  Yet Australia’s coming Federal election looks all over but the shouting. Labor’s ‘soak the rich’ strategy looks a winner. Compare this with the Hawke-Keating government, where ‘prosperity for all’ was th...

February 23, 2019

The International Monetary Fund has advised Australia that economic growth will be lower than predicted by Treasury and the RBA, perhaps 2.5 % in the absence of serious economic reform..  (Timing is all, and the leading policy wonks in Australia probably now agree with the gnomes from Washington.)

Other advice included broader tax reform, especially finding ways to broaden the GST, cutting income and business taxes and introduc...

Please reload

Recent Posts

November 17, 2019

November 10, 2019

November 10, 2019

November 3, 2019

October 27, 2019

Please reload