Monetary policy is recognised as being less effective as official interest rates approach zero. There are two main reasons. First, spending in Australia on investment is not very responsive to reductions in interest rates. Second, any reduction in official interest rates is mediated by the banks and other financial institutions. For practical reasons deposit rates cannot go below zero so, in order to maintain interest margins banks have to resist reductions in lending rates and that effectively nullifies any impact of reductions in official interest rates.
Research released today by The Australia Institute shows that preparations have not begun on parts of the Adani royalty deal, which is due for completion on Monday 30 September.
The Australia Institute has found that the Federal Government’s gas policy actually keeps prices high for Australian consumers and recommends a cap on LNG exports in its submission to the review of the Australian Domestic Gas Security Mechanism (ADGSM).
The submission finds that the Government’s export gas trigger entrenches high gas prices by allowing LNG companies to supply just enough gas to the domestic market to avoid the trigger, but so little that prices remain high.
Policy should focus instead on capping LNG exports to reduce domestic gas prices and also on ways to help households and industry reduce gas use.
New research from The Australia Institute has shown that more than half (51%) of South Australians want Adelaide to host a fully electric Formula E Championship race, while just 11% of people oppose the idea.
Formula E is an electric motor sport series, similar to Formula 1, which has grown in popularity since its inaugural championship in 2014. Adelaide has repeatedly been suggested as a potential host city for the event in Australia.
- 51% of South Australians support hosting Formula E in Adelaide, while only 11% are opposed
The ACT will soon become the first Australian jurisdiction to achieve a transition from a fossil fuel based supply to 100% renewable electricity. Just seven other jurisdictions have achieved this, in Germany, Austria and Spain.
Some allegations around Crown Casino fall within ACLEI’s jurisdiction, but others do not – and, in any case, ACLEI’s powers are too limited. A National Integrity Commission is needed for the allegations to be fully aired and investigated.
The annual Climate of the Nation report has tracked Australian attitudes on climate change for over a decade.
Climate of the Nation 2019 is the second report produced by The Australia Institute, continuing the work of The Climate Institute (2007-2017).
Key findings include:
New research shows seven in ten Australians (72%) think that, if Australia is at risk of a recession, the Government should prioritise economic stimulus over the budget surplus.
The Australia Institute surveyed a nationally representative sample of 1,464 Australians about their economic priorities.
New research released today by The Australia Institute shows that the vast majority of Australians prioritise production of food for Australian consumption, and support for family farms in the Murray Darling Basin.
When respondents were asked to rank agriculture and water policy goals:
The proposed Mulga Rock uranium mine is unlikely to be in the WA community interest. Aside from the environmental risks inherent in uranium mining, the feasibility study for the proposal uses improbable market scenarios and does not illustrate a credible range of project outcomes.