FAUS - Political Winds In Australia And The Likelihood Of Lower?For?Longer Interest Rates
As Australians prepare to go to the polls on 18 May, the middle of this election campaign is an opportune time to revisit the ongoing conflict between politics and effective economic policy. Its implications are also highly relevant as Australia's economy continues to slow.
Politics are inherently focused on the short-term goal of appealing to the electorate, which can lead to populist measures, rather than on longer-term policy, which can potentially benefit the overall economy. In Australia, it has lately become politically popular, and apparently a vote-winner, to achieve "budget balance." This myopic focus on