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."

Tuesday, March 20, 2012

Is Australia's potential growth rate lower than we think (say only ~2.75% pa)?

So thinks Ricardian Ambivalence:

"My assessment is that potential growth may be more like 2.75%. If this is the case there is little scope to ease monetary policy at present, and more of the fiscal deficit is structural than it seems."