Treasurer Morrison declares an end to the great Australian adjustment

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Deary, deary me. Via the AFR today:

Treasurer Scott Morrison says governments can build infrastructure projects more cheaply and effectively than the private sector, justifying the “good debt” focus of his second budget that next week will foreshadow a turning point to “better times” for Australian households.
In a wide-ranging interview with The Australian Financial Review, Mr Morrison expressed cautious optimism that international ratings agencies would retain Australia’s AAA sovereign credit rating given his “very high goal” of keeping to the projected return to budget to balance by 2021.

He said Sydney’s apartment market was “already turning” due to prudential controls on bank lending to investors that were flexible enough to avoid a “hard landing” for housing.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.