Economics Explored

Interest Rates, Australia’s 3 Biggest Challenges, Global Fertility Crash, & the Tobin Tax Debate w/ John Humphreys, Australian Taxpayers’ Alliance

Episode Summary

Show host Gene Tunny and colleague John Humphreys dissect Australia’s latest controversial Reserve Bank interest rate decision, debating inflation targeting and central bank independence. They challenge conventional economic thinking, particularly around the NAIRU—the Non-Accelerating Inflation Rate of Unemployment (NAIRU). The episode also tackles the implications of declining fertility rates globally, the controversial Tobin tax on financial transactions, and critiques current climate policies through an economic lens.

Episode Notes

Show host Gene Tunny and colleague John Humphreys dissect Australia’s latest controversial Reserve Bank interest rate decision, debating inflation targeting and central bank independence. They challenge conventional economic thinking, particularly around the NAIRU—the Non-Accelerating Inflation Rate of Unemployment (NAIRU). The episode also tackles the implications of declining fertility rates globally, the controversial Tobin tax on financial transactions, and critiques current climate policies through an economic lens.

Please email Gene your thoughts on this episode via contact@economicsexplored.com.

Timestamps

• Reserve Bank of Australia's Interest Rate Decision and Inflation Targeting (0:00)
• Debate on RBA Independence and Inflation Targeting (8:12)
• Challenges Facing the Australian Economy (23:00)
• Libertarian Perspectives on Currency and Population Decline (35:33)
• Economic Implications of Declining Fertility (36:31)
• Tobin Tax and Its Economic Rationale, Pros and Cons (50:12)
• Conclusion and Future Topics (56:48)

Takeaways

1. RBA Decision Controversy: The RBA's recent decision on interest rates highlights the complexity and uncertainty around inflation management.
2. NAIRU Concept Critique: The Non-Accelerating Inflation Rate of Unemployment is flawed and may misguide policy, according to John Humphreys.
3. Demographic Concerns: Declining fertility and aging populations could be the defining issue of the 21st century.
4. Economic Impacts of Climate Policy: Current climate change actions often lack transparent cost-benefit analyses, raising economic risks.
5. Risks of Tobin Taxes: Tobin taxes seem feasible at low levels but risk inefficiency, evasion, and global governance issues.

Links relevant to the conversation

Full ATA livestream “ATA Live #20: Tobin tax & interest rates”:

https://www.youtube.com/live/34WBRZNbwwc?si=TPU14g7SffIXuWMP

Australian Taxpayers’ Alliance:

https://www.taxpayers.org.au/

Zoom catch up with show host Gene Tunny

Join Gene and other listeners for a catch-up on Zoom on Thursday, 31 July at: 

• 21.30 to 22.30 AEST/GMT+10 (Australian East Coast time)
• 12.30 to 13.30 BST/GMT+1 (British Summer time)
• 07.30 to 08.30 EDT/GMT-4 (US East Coast time)

The link to the Zoom room is:

https://us02web.zoom.us/j/9471595560

RSVP by 20.00 GMT+10 on 31 July to contact@economicsexplored.com

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