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."

Sunday, February 13, 2011

Aussie households' conservatism has reduced interest rates. Seriously!

The Guv puts it this way...

"Ms OWENS —In your consideration of interest rates, up and down, does the increased caution affect people’s response to interest rate rises?

Mr Stevens —That is hard to say. I think the increased caution has a bearing on what level interest rates turn out to be. It already has had an effect, I think, and, if it continues, that will continue to be so. It is harder to say whether, when there is actually a move, the new-found caution somehow gives a stronger response to any particular move. It is possible that it could be so. It would be very hard to prove one way or the other so far, though, I think."

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at 9:43 PM