Real world economics

Critiques of orthodox economics have proliferated in recent times, but often these critiques are not translated into alternative principles for policy-making. The Centre for Policy Development’s ‘Real World Economics’ program provides a platform for our fellows and others to explore approaches which move beyond the ‘small government vs big government’ debate and provide the basis for consistent policy-making across portfolios.

Much of the thinking that informs government policy is based on outdated or oversimplified economic theory — recent applied research (for example in behavioural economics) is often not taken into account. We need to incorporate a broader, more balanced understanding of human nature into the economic principles that underpin policy development.

Rethinking the role of financial regulators

Wilson Sy and James Murray

In view of the Madoff scam, is it time to adjust our thinking towards our financial regulators, asks James Murray and Wilson Sy: Many people expect financial regulatory agencies (regulators) to protect them from unethical… more

InSight Special Edition | The Global Financial Crisis in Review II

In this edition: Image: Wordle

You can see a lot by just looking: Understanding human judgement in financial decision-making | OCCASIONAL PAPER

Ian McAuley

In this paper CPD fellow Ian McAuley outlines the main implications of behavioural economics for financial decision-making, breaking down the myth that market participants are always rational decision-makers who act to maximise their own best… more

Ian McAuley examines the Australian economy for the Australian Collaboration

Ian McAuley

CDP fellow Ian McAuley surveys Australia’s economic structure, including an outline of some long-term and medium-term challenges for Australian economic policy in his Australian Economic Fact Sheet for the Australia Collaboration, a group of peak… more

Obstacles to Social Investment

Rob Salter

In the second of his series of three articles on investment in the disadvantaged, Robert Salter identifies some key obstacles to implementing the increased investment he advocated in April InSight. His third article, in the… more

Freeing public policy from the fiscal straightjacket

Miriam Lyons

In this discussion paper for the Centre for Policy Development, Fred Argy demolishes the myths underpinning the bipartisan consensus falsely described as ‘fiscal conservatism’.

Australia’s Fiscal Straightjacket | OCCASIONAL PAPER

Fred Argy

In his new discussion paper for the Centre for Policy Development, Fred Argy demolishes eight myths underpinning what currently passes for “fiscal conservatism” in Australia. The view that neither taxes nor public debt levels should… more

Unsustainable debt: Australia’s own subprime crisis

Miriam Lyons

Australians are addicted to debt but we can’t afford to keep borrowing at current levels forever, according to a new report by Centre for Policy Development fellow Dr Steve Keen.

Deeper in Debt | OCCASIONAL PAPER

Steve Keen

Australians are addicted to debt but we can’t afford to keep borrowing at current levels forever. ‘Deeper in Debt’ is CPD fellow Steve Keen‘s analysis of Australia’s looming crisis in housing affordability and private debt.