The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Wednesday, October 6, 2010

So you are worried about the Aussie dollar's appreciation?

Well, put it in perspective. The trade-weighted index measures the change in the Australian dollar weighted by our largest trading partners. The recent appreciation does not look all that bad placed in proper historical perspective. The second part of the panel shows the RBA's FX interventions--think of them as the "visible hand." The RBA buys/sells the currency whenever it thinks it has undershot/overshot its fair value.