Monday, 27 June 2016

What if Brexit bites?

Only on the internet. Here I was about to argue about what Australia must do if Brexit bites internationally ( see David Beckworth for example) and thus affects us when I find the Kouk has beaten me to it.

I agree with most of what he has said however I do think I doubt we will face a GFC lite more like an Asian crisis situation where the currency would take the brunt of policy action.
Monetary policy can do little now given cash rates are at 1.75% and have a minimal impact.

Let us assume the present government are elected then if they have to use some fiscal stimulus could they politically?

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