Neal Stoughton
(Episode 322; 14 minutes 41) As Australia officially avoids a recession the government is weakening its resolve on its economic stimulus package. Treasurer Wayne Swan said last week that a premature withdrawal would “knee-cap” our recovery. Yesterday, when the latest national accounts showed that Australian GDP grew again last quarter, he indicated a staged withdrawal of the stimulus measures from the end of this year.
Professor Neal Stoughton, Head of Banking and Finance at the Australian School of Business, says Australia’s international trade is driving growth in the economy and there is little evidence that stimulus from the government has had any effect anyway.
The leading indicator for the health of an economy, he argues, is the share market which has rebounded markedly since March.
Australian, UK & US shares - compiled by Phil Dobbie
So what does Neal Stoughton have to say about Steve Keen’s view that the economy remains unbalanced, with this year seeing the highest ever debt to GDP ratio (see “The Bear in a Bull Market“)?
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