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Pages tagged "markets & regulation"


Putting the customer back in front: How to make electricity prices cheaper


A new report from the Grattan Institute's Energy program, Putting the customer back in front: how to make electricity cheaper, presents a concrete set of proposals for substantially reducing the power bills of Australian households.

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Challenges await Australia’s new Tax Commissioner

by Miranda Stewart

In January 2013, Mr Chris Jordan AO starts as Federal Commissioner of Taxation in charge of the Australian Taxation Office (ATO). He follows Mr Michael D’Ascenzo AO, who was not reappointed after his seven-year term.

Mr Jordan will be only the 12th Commissioner and only the second external appointment in the ATO’s history. All appointments have been male. The first Commissioner, George McKay, appointed from the New South Wales public service in 1910, seems to have died from overwork in 1917 after administering on a shoestring the federal land tax and income tax introduced in 1915 to help fund World War I. The next Commissioner, Robert Ewing, appointed an assistant commissioner to help. In his 22 year innings until 1939, Mr Ewing oversaw a new federal estate tax, payroll tax, and the turbulent time before World War II, when the federal government took over the income taxes of the States.

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You talkin’ to me? Gerry Harvey’s one-man, online retail debate

Gerry Harvey is great media talent. When I first became interested in online retail, I almost immediately became interested in Gerry.

As far back as 2000, Gerry told ninemsn on a live chat forum “that most of the online business will be conducted by traditional retailers and that over 90% of the e-retailers will in fact all go out of business one after the other”.

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The Unrepentant And Unreformed Bankers

By Phil Angelides

Money laundering. Price fixing. Bid rigging. Securities fraud. Talking about the mob? No, unfortunately. Wall Street.

These days, the business sections of newspapers read like rap sheets. GE Capital, JPMorgan Chase, UBS, Wells Fargo and Bank of America [2] tied to a bid-rigging scheme to bilk cities and towns out of interest earnings. ING Direct , HSBC and Standard Chartered Bank  facing charges of money laundering. Barclays caught manipulating a key interest rate, costing savers and investors dearly, with a raft of other big banks also under investigation. Not to speak of the unprecedented wrongdoing that precipitated the financial crisis of 2008.

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The Next Banking Crisis

by Hugo Radice

In the ongoing Euro-crisis, our political leaders are constantly criticised for “playing catch-up” and not being “ahead of the curve” (although others might feel that they are completely round the bend).   Perhaps, therefore, it is time to look up from the turmoil in the sovereign bond markets and the counsels of the European Union, dust off the crystal ball, and look forward to the next banking crisis.  For it is becoming increasingly clear that banks across Europe face a much more serious problem than a 50% haircut on their holdings of Greek government bonds;  and that problem goes to the heart of what is wrong with the current culture and practices of the financial sector.

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A UK Recovery Program: Go Keynesian (Part 2)

by John Weeks

The latest statistics show that real household earnings in Britain fell by 3.5% over the last year (The Guardian24 November 2011), a decline unprecedented in peacetime.  What can be done to stop this unfolding disaster? While the private sector is dangerously in debt (“over-leveraged”), the public sector is not as I showed in my last article.  On the contrary, by any accepted financial measure, the UK government is under-indebted, the ratio of net debt to GDP, debt service capacity or marginal borrowing cost.

The solution to falling comes and the looming second recession is for the government to borrow and spend.  If that sounds like bad economics, it is only because the economics profession degenerated into free market metaphysics long ago, turning out reactionary propaganda against rational policy.

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The rise and fall of the 'free market'

by David Hetherington

Ideas, like fashion, move in waves. A big idea will form, expand, dominate, and fade. Along the way it will accrue adherents and opponents, leaving a trailing wake of subsidiary ideas.

The last century has seen the rise and fall of communism, fascism, and socialism. Democracy has proven more enduring, still expanding if not dominating.

Yet the idea closest to the inflection point between domination and fade is the ‘free market’, the most influential concept in political economy over the past 40 years. Outlined in its modern form by the Austrian school of economists and expanded by Milton Friedman, the free market was the bedrock of the Thatcher/Reagan reforms. It defined the political orthodoxy for both right and left until the financial crash of 2008.

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A Preview of the November 11-13, 2011 APEC Leaders' Meeting

by Joshua Meltzer
The United States is this year’s host of the Asia-Pacific Economic Cooperation (APEC) Summit later this week. APEC leaders will meet in Hawaii, accompanied by their foreign and trade ministers and a host of senior officials. The United States will attend APEC with some important trade policy outcomes under its belt already, most significantly the passage of the Korea-U.S. free trade agreement (FTA), Columbia-U.S. FTA and Panama-U.S. FTA. Particularly, the Korea-U.S. FTA and progress in the Trans-Pacific Partnership (TPP) negotiations will help the United States show its serious commitment to pursuing international agreements that liberalize trade and investment in the Asia Pacific region.
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Why Believe In Keynesian Models?

by Paul Krugman

A correspondent asks a good question: what evidence makes me believe that Keynesian economics is broadly right, given the relative absence of experience with large fiscal stimulus programs?

I’d answer that question with several points.

First, we’re talking about a model, not just a prediction about the impact of spending increases. So you can ask about the ancillary predictions of that model as opposed to rival models. Anti-Keynesians assured us that budget deficits would send interest rates soaring; Keynesian analysis said they’d stay low as long as the economy remained far from full employment. Guess who was right?

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Milton Friedman’s Magical Thinking

by Dani Rodrik

Next year will mark the 100th anniversary of Milton Friedman’s birth. Friedman was one of the twentieth century’s leading economists, a Nobel Prize winner who made notable contributions to monetary policy and consumption theory. But he will be remembered primarily as the visionary who provided the intellectual firepower for free-market enthusiasts during the second half of the century, and as the éminence grise behind the dramatic shift in the economic policies that took place after 1980.

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