Ahead of the Australia Day long weekend Deep T spoke about Australian demand and interest rate dynamics, and the relationship of global events to domestic policymaking concerns.
During the discussion he traverses some of the implications of actions by US President Trump, and the ways in which this complicates Australian currency and interest rate settings, and the need for Australia to rebuild an import competing or exporting sector of the economy as the commodity prices and volumes which have underpinned growth over the last 25 years begin to recede.
As that world becomes increasingly uncertain the logic of having some of the most expensive housing in the world, and of drawing younger Australians into the housing market for ever larger mortgages backed by an increasingly uncertain long term employment outlook provides a duality for future Australia and its reckoning of Australia’s contemporary polity.