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."

Thursday, December 2, 2010

Solvency and illiquidity--one and the same

The Governor of the RBA tried to distinguish between solvency and illiquidity in his recent parliamentary testimony. The truth is you cannot, which is why the faux distinction made by the RBA in its Statement executed with the Treasurer is fundamentally flawed. Nor does one want unelected bureaucrats distinguishing between the two. Dr Elvis Jarnecic has an excellent op-ed over at the ABC's Drum explaining this point, which I have linked to below. As it happens, a similar observation has been made by this blogger, which I was referred to by the FT.
at 7:06 PM