Month: September 2013

France and Spain give us a taste of what is to come in Europe in the coming decades. What comes across as a relatively theoretical exercise concerning pension levels in the distant future will become a reality within the next ten to twenty years — and not just in these two countries.

If Australia wanted to draw any conclusions from the German turnaround of the past decade, there are a few. To trigger a wave of economic modernisation, it either takes a conviction politician such as Margaret Thatcher or it takes an economic crisis to force it onto the agenda, as happened to Gerhard Schröder.

Most followers of the euro crisis agree that the German elections, to be held on September 22, will be a watershed moment. Everything that had been put on hold in the crisis will finally be allowed to happen once Angela Merkel has been returned to power.

Coase’s theorem has important implications for economic policy. Wherever externalities occur, clearly defined and enforceable property rights can reduce the need for government intervention.

Australia and New Zealand: They have been going in different directions for the past five or six years. It will be interesting to see in which direction Australia opts to go on Saturday, and where Australia will be in next year’s competitiveness index.

The Canterbury earthquakes certainly demonstrated how resilient New Zealanders are in the face of adversity, but there is no doubt we would have been better off without them. Don’t let bad economics suggest otherwise.