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, May 11, 2011

NAB: Nothing in Budget to change RBA's view

The highly respected NAB team of economists conclude:

"While we see the Budget as a credible document, it does little more than bring the Budget (structurally) back to neutrality by 2013/14. One wonders whether it could not have gone further given that (in the Government’s own words) the nation is currently experiencing the largest terms of trade boom in 140 years. As well as preparing Australia to better cope with the strains posed by such a boom (through improving skills and availability of suitable labour and dealing with the multispeed economy), it would have been more reassuring to have seen some thought given to the adjustment phase when the boom eventually peters out. Finally, there is nothing in the Budget to change the RBA’s view that tighter monetary policy is required in the current environment. Nevertheless, the imminent hikes in the cash rate will not help the challenges that face some sectors and states in the multi speed economy."