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, September 4, 2012

RBA currency intervention could cost more than $11 billion per annum

I have a column in the AFR today on the hidden costs of RBA currency intervention. I owe a big debt of gratitude to my mate Ricardian Ambivalence for first explaining this to me, and subsequently checking my copy. I wanted to plug him directly, but he would not permit it. I don't know anyone outside of the RBA who understands the nuts and bolts of monetary policy better. I also ran the logic by the RBA to make sure it was right. It was hard  to write because the physical paper did not have much room, and I was restricted to 760 words. Anyone who knows me knows that I don't cough in 760 words! Enjoy.