Economics Explored

What is Anarcho-capitalism? And what would a libertarian analysis of the COVID-19 pandemic tell us? Economics Explored host Gene Tunny has a thought-provoking conversation with Loyola University's Professor Walter Block, whose Wikipedia entry describes him as "an American Austrian School economist and anarcho-capitalist theorist." Regarding anarcho-capitalism check out Walter's books:The Privatization of Roads and HighwaysDefending the UndefendableMentioned in the discussion is the Homestead principle associated with John Locke. Regarding COVID-19, check out Walter's 2020 paper:A Libertarian Analysis of the COVID-19 PandemicAlso on COVID-19, check out this podcast discussion mentioned by Gene in his conversation with Walter:Lord Sumption: mass civil disobedience has begun

A conversation on the importance of the Treasury department to government and economic management. Economics Explored host Gene Tunny speaks with Paul Tilley about his 2019 book Changing Fortunes: A History of the Australian Treasury.Paul Tilley was an economic adviser to governments for 32 years, working at senior levels in all parts of Treasury, as well as other key agencies such as the Department of Prime Minister and Cabinet, the Treasurer’s office and the OECD. He is now a Senior Fellow at the Melbourne Law School, a Visiting Fellow at the Australian National University Tax and Transfer Policy Institute and works with a number of non-government organisations.Here's Paul's Melbourne Law School profile and here's Paul's ANU profile.Finally, here's a link to the Wikipedia article on the trillion-dollar coin Gene alludes to in the conversation.Get in touchGet in touch with Economics Explored host Gene Tunny with any comments, suggestions, or questions by emailing him via: contact@economicsexplored.com

QUT's Dr Stephen Whyte speaks with Economics Explored host Gene Tunny about insights from behavioural economics and science regarding COVID responses. Stephen is a Postdoctoral Research Fellow in Behavioural Economics in the School of Economics & Finance, QUT. His research focus explores large scale decision making in mate choice settings. His work takes a multi-disciplinary approach in studying key sex differences in human behaviour, with work that bridges the fields of applied micro-economics, personality & social psychology, and evolutionary biology. His most recent research has explored such diverse topics as sex differences in nonbinary gender identification, male & female decision making in assisted reproductive & donor insemination medical environments, and preferences vs choice in cyber dating markets.Material relevant to the discussionStephen's co-authored paper:Can Psychological Traits Explain Mobility Behavior During the COVID-19 Pandemic?Stephen's Brisbane ABC radio interview:COVID lockdowns prove Aussies aren't larrikins after allEconomics Explored interview with Stephen's colleague Prof. Benno Torgler:Certified Corona-Immunity as a Resource with Prof. Benno TorglerGet in touchGet in touch with Economics Explored host Gene Tunny with any comments, suggestions, or questions by emailing him via: contact@economicsexplored.com

Economics Explored host Gene Tunny discusses the US Fed's new approach to inflation targeting with Michael Knox, the Chief Economist of leading Australian wealth management firm Morgans.  The approach implies the Fed will allow the economy to run hot for a while during the recovery from the pandemic recession. The conversation revolves around Michael's recent note:The Fed - Allowing the economy to run hotOther links relevant to the conversation include:Powell announces new Fed approach to inflation that could keep rates lower for longerBoskin Commission ReportFRED yield curve data showing steepening yield curve over late 2020/early 2021, as longer-term rates/yields (e.g. 10-year Treasury bond yield) increase relative to shorter-term rates (e.g. Federal Funds Rate)Michael Knox on Quantitative Easing as a long-term strategyRobert Heller's 1976 paper on International reserves, money, and global inflation

Economics Explored host Gene Tunny is joined by Darren Brady Nelson of LibertyWorks and the Heartland Institute to discuss the economics of industry assistance or so-called corporate welfare. Gene and Darren also consider the concept of crony capitalism. This episode’s topic was prompted by an interview request host Gene Tunny had from an Australian ABC journalist regarding the Australian Government’s generous tax incentives for the film industry (e.g. check out Australian Prime Minister Scott Morrison’s July 2020 announcement New $400 million incentive to boost jobs for screen industry).In 2019, Gene and Darren co-authored a paper on bad spending decisions made by the state of Queensland, Australia for Tax and Super Australia’s Special Centenary Publication: Government Waste, and identified generous spending on Screen Queensland and the state government paying for the construction of a new sound stage at Village Roadshow studios on the Gold Coast.Gene has previously written extensively on film industry assistance in Australia - e.g. this 2017 Centre for Independent Studies Policy paper: The case against film industry subsidies. On the experience of other jurisdictions with subsidies to the film industry, check out this Advocate article: Film tax break costs Louisiana millions, new study shows. Regarding what a refundable tax credit is, check out the IRS website. On trends in industry assistance in Australia, check out the Productivity Commission’s Trade and Assistance Review. Finally, check out Dan Mitchell’s write up of Milton Friedman’s matrix which Darren and Gene discuss in the episode. About this episode’s guest Darren Brady Nelson is an Austrian school economist who serves as the chief economist at LibertyWorks and as an associate scholar with the Center for Freedom and Prosperity. Nelson is also a policy advisor to The Heartland Institute.Since 1994, Nelson has worked as an economist in Australia, New Zealand, United Kingdom, and the United States. Nelson’s work in economics has focused on the energy, finance, government, transportation, water, and telecommunications industries.Nelson has also worked as a political and policy commentator since 2009. As a commentator, Nelson has written articles for numerous conservative and libertarian publications and think tanks, and he has appeared on countless podcasts, radio shows, and television programs.He is the author of the book Ten Principles of Regulation & Reform (Connor Court 2017), and is frequent public speaker and media commentator.Nelson has bachelor’s degree in economics (cum laude) from the Australian National University, where he majored in economic history. Nelson also earned a master’s degree in commerce (magna cum laude) from the University of New South Wales, where he majored in business law.

A conversation on fiscal stimulus and the government spending multiplier with Professor Fabrizio Carmignani, Dean (Academic) of Griffith Business School. Fabrizio and Economics Explored host Gene Tunny discuss: how the size of the multiplier (and the degree of crowding out) varies with the state of the economy;how vouchers might be a more effective stimulus than cash handouts;how governments really do need to run surpluses (or only very small deficits) when the economy recovers so the debt-to-GDP ratio can be stabilised and reduced in the long-term; andhow Modern Monetary Theory (MMT) isn't a theory, nor is it modern.Links relevant to the conversation include:Does Government Expenditure Multiply Output and Employment in Australia?Fiscal Multipliers in Recession and ExpansionHow Much Did the 2009 Australian Fiscal Stimulus Boost Demand? Evidence from Household-Reported Spending EffectsFabrizio's bioFabrizio Carmignani is Dean (Academic) and Professor of Economics in the Griffith Business School. His research is in the broad field of applied macroeconomics and applied econometrics. His recent publications are in the areas of conflict economics, tourism economics, policy modeling, spatial econometrics, and the economics of natural resources. He has also been appointed as a member of the ARC College of Experts from 2019 to 31 December 2021.He is a regular contributor to various media outlets, where he writes and speaks about fiscal and monetary policy issues in Australia and overseas. Between 2002 and 2009 he worked for the United Nations in various roles, including the position of First Economist in the Trade, Finance and Economic Development Division of the UN Economic Commission for Africa. Fabrizio holds a PhD from the University of Glasgow and a Research Doctorate from the Universita' Cattolica in Milano.

To what extent does Foreign Direct Investment create spillovers that boost the productivity of domestic businesses? Economics Explored host Gene Tunny speaks with the authors of a recent study addressing this question: Sara McGaughey, soon to take up a position as Professor at Copenhagen Business School, and Professor Pascalis Raimondos, Head of the School of Economics and Finance at QUT Business School in Brisbane, Australia. Sara and Pascalis have taken advantage of the huge Orbis business database which has allowed them to construct a panel dataset of nearly 576,000 manufacturing firms across 20 European countries. They find evidence that controlled foreign firms can boost the productivity of other firms in the same industry (horizontal spillovers), while previous studies had only convincingly found evidence of vertical spillovers, between foreign affiliates and their domestic suppliers. The study is titled Foreign Influence, control, and indirect ownership: Implications for productivity spillovers and was published in July 2020 in the Journal of International Business Studies.The authors can be contacted regarding their research via pascalis.raimondos@qut.edu.auTo get in touch with Gene,  and to ask any questions or provide any comments or suggestions, please email him via contact@economicsexplored.comLinks relevant to the conversationHow hiring this man gave Brisbane company an instant $100m windfallTesla’s 100% American Owned Factory In China Is A Big Deal Note from Pascalis and Sara on examples of indirectly controlled firmsBelow are two examples from our dataset where the foreign subsidiary is immediately owned by a firm resident in the same country, but ultimately owned (i.e. controlled with more than 50% voting equity) by a single foreign owner (i.e. the ultimate owner).  In studies that look for an immediate direct foreign owner (rather than the ultimate owner) to identify a firm as ‘foreign’, our example firms will be classified as domestic – leading to significant mis-categorisation of what is a foreign firm.As you can see from our ‘egg’ figure in the paper, there are just as many of these ‘typically hidden’ foreign firms as those captured under an ‘immediate direct foreign owner’ definition. EXAMPLE 1Name: GTS IndustriesID: FR331620096Country: FranceOwner ID: FR562094425Owner Name: ARCELORMITTAL FRANCEOwner Country: FranceThe biggest direct owner is registered in France. Hence the company would be defined as domestic under the traditional (10%, influence) definitionUltimate Owner ID: DE7290116150Ultimate owner name: DHS DILLINGER HUETTE SAARSTAHL AGUltimate Owner country: GermanyEXAMPLE 2Name: STE DES ACIERS D'ARMATURE POUR LE BETON (SAM)ID: FR389517061Country: FranceDirect Owner: River AcierDirect Owner ID: FR344733803Direct Owner country: FranceDirect owner in the same country as the company, wherefore it is defined as domesticUltimate owner:  ITMI0840952Ultimate owner name: Riva Family (PARTECIPAZIONI INDUSTRIALI S.P.A.)Ultimate owner country: Italy

How the retail sector has been transformed over the last two decades and how emerging retailers can thrive with high-touch service, customisation, and an optimised global value chain. Economics Explored host Gene Tunny speaks with Bruno Cortigiani, owner of up-and-coming made-to-measure menswear retailer Merlai.Check out Merlai on Instagram: @merlaiofficialRelevant links include:Photo of Bruno at the microphone for the podcast recordingStart with Why - Simon Sinek's TED talkThe E Myth Revisited Why Most Small Businesses Don't Work and What to DoAbout ItFletcher Jones (Australian entrepreneur) [NB toward the end of the episode, Gene spoke off the top of his head about the historical Fletcher Jones and didn't quite get the story right, so please check out the Wikipedia entry for the right story]

The concept of a Circular Economy is increasingly being mentioned in economic and environmental policy discussions. Economics Explored host Gene Tunny chats with Craig Lawrence of Lytton Advisory about what a Circular Economy would look like, and whether it is compatible with rational economic thinking.The takeaway is that there is some merit in the Circular Economy concept, but we need to apply hard-headed economic thinking when it comes to the specifics. Toward the end of the conversation, Craig notes:I think that there's an opportunity here [with the Circular Economy]. The linear concept, I don't think is sustainable. And so we need to do something different. But I don't think that there's a blanket solution or an easy panacea. And I still think the economist in me wants to analyse and collect data, and look at individual markets and look at specific opportunities and weigh them up…I don't want to be running or pushing a green solution for the sake of a green solution. I want to know that it's something that is actually workable, viable, something that is going to increase economic utility, consumption, and can also engage with business properly as well.About this episode’s guestCraig Lawrence is the Founder and Managing Director of Lytton Advisory Pty Ltd (2013 – present). He is also a founding Director of UTL Utilities Pty Ltd (2018 – present). He has over 30 years of experience across government and private sector projects, particularly in infrastructure, transport, and tourism. Between December 2018 and September 2019, Craig led the Economic and Social Infrastructure Program as its inaugural Managing Director. This $130m Australian program supports the planning, prioritisation, and delivery of key energy, telecommunications and water infrastructure in Papua New Guinea.Prior to establishing Lytton Advisory, Craig was Director – Infrastructure Policy at the Queensland Government Department of State Development, Infrastructure and Planning where he led a team of policy and regulatory analysts and economists looking at infrastructure prioritisation and resource region supply chain optimisation. He was previously Director – Economic Policy within the Department.Craig’s previous roles include as a senior consultant in several professional service firms and as an economic analyst in the Queensland and Australian Federal Government systems. His federal government experience includes extended periods in economic analyst and policy roles in the Treasury, Transport and Tourism portfolios during the 1990s.Links relevant to the conversationThe Circular Economy in detailAustralia’s National Tyre Product Stewardship Scheme'Right to repair' taken up by the ACCC in farmers' fight to fix their own tractorsCrude Oil Prices - 70 Year Historical Chart

Dr Begoña Dominguez speaks with Economics Explored host Gene Tunny about her recent video on Financing the COVID-19 Government Debt.Begoña Dominguez is currently Associate Professor at the School of Economics, University of Queensland. Her research interests are in the area of macroeconomics and, more specifically, in the design of optimal fiscal and monetary policies. Her research has been published in top journals in economics, such as Journal of Monetary Economics and Journal of Economic Theory, among other outlets.In her video, Begoña outlines three thought provoking proposals to assist with financing the COVID-19 government debt, specifically:1. coordinated fiscal and monetary policies with a temporary lift in the inflation target, along the lines of what was suggested by Bianchi, Faccini, and Melosi (2020) Monetary and Fiscal Policies in Times of Large Debt: Unity is Strength2. social contract, whereby an evaluation is done after the pandemic is over to determine whether some groups were under or over-compensated, and that evaluation could guide future tax policies3. improving the efficiency of the tax system, to ensure that whatever revenue is raised is raised in the most efficient way possible. In the conversation, Begoña mentions that the US Federal Reserve has modified its inflation target during the pandemic. For further information, see: What does average inflation targeting mean for investors?