Australian Prices Heading South

29 January 2009

Yesterday’s quarterly inflation release, which showed prices falling by 0.3% over the December quarter across Australia, cemented expectations of a 1% cut in interest rates in February. How things have changed! My very first Stubborn Mule post back in May 2008 examined the inflationary pressures that had so concerned the Reserve Bank and led them […]

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Sydney Petrol Prices

29 June 2008

Soaring petrol prices have led to all sorts of calls for action to help reduce prices. The Opposition called for a 5 cents per litre reduction in the excise on petrol, which currently stands at 38.1 cents per litre. (See note below for an explanation of the strike-throughs). the abolition of the double taxation of […]

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Anatomy of a Bubble

31 May 2008

The Joint Economic Committee is a standing committee of the US Congress is charged with reporting on US economic conditions. Needless to say, the Committee is making a close study of the financial turmoil triggered by the collapse in US house prices and rising delinquency rates among “sub-prime” borrowers. Recently Alex J. Pollock gave testimony […]

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Drivers of Australian Inflation

18 May 2008

Inflation in Australia has been running well outside the 2-3% range targeted by the Reserve Bank of Australia, which is why interest rates have been on the rise for the last couple of years. So what has been driving prices up in Australia? One useful way to get a sense of what has been happening is to use a type of chart known as a treemap. These charts tend to be pretty busy, but can be a great way to explore a rich set of data.

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