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."

Friday, January 28, 2011

HSBC's Bloxham describes Government's flood package as "sensible"

Quoting AAP:

"Reconstruction work after the Queensland floods could boost Australia's medium term gross domestic product (GDP), a former Reserve Bank economist says...

"In the medium term, I think (the floods) will add to GDP," Mr Bloxham told reporters in Sydney on Friday.

"It destroyed capital stock, and you need to replace the capital stock.

"GDP doesn't measure capital stock, it measures activity ... it's not a measure of welfare, that's for sure.

"As a consequence (of the floods), there will be more spending than there would have been in a world without those floods.

Mr Bloxham praised the federal government's plan to fund reconstruction though spending cuts, but is uncertain about the need of a one year flood levy announced on Thursday.

"I wanted to see most of it come out of a reduction in spending, but I wanted to see more," he said.

"I'm not particularly wedded to saying the levy is a great idea. I think it's, you know, if they have to do it, they've done it in a way that is reasonably sensible." "