Reserve Bank of Australia

Discover how the Reserve Bank of Australia fixes the price of money at the expense of ordinary Australian savers like you.

Find out how any shift in monetary policy can send the value of your assets, whether it’s your share portfolio, your house or even the dollars in your pocket up and down like a yoyo.

Understanding monetary policy will make you a better investor. Why not read the arguments for abolishing central banks like the RBA and letting the market set interest rates? To see what you think, start here…

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Australian Banks Have a Problem

Higher mortgage rates will mean that households face higher mortgage costs, which could decrease savings growth even more. Higher rates with no wage growth could also mean that borrowers applying for new loans face higher…

Winning Streaks Always End

Our economic winning streak is in record breaking territory. The last recorded recession in The Lucky Country ended in June 1991. But that’s not how life should work.

Expect Things to Change

You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.

Welcome to Fantasy Land

The circulation of those borrowed monies within the economy is what’s kept the GDP numbers in the positive. For the best part of 30 years, we’ve been compounding our debt pile at an average annual…

Surprise Attack

Ever since June 1991 — our last official recession — the textbook approach to generating GDP growth has been to encourage households to borrow to ‘get the economy moving’. Our economic ‘success’ has really been…

Markets & Money