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My guest today is Frank Milne of Queen’s University.

Our topic for today will be unintended consequences. Frank has written a paper directed at policymakers to help them understand some of the pitfalls that economists have identified. The paper is directed at Australian policymakers, so some of the examples are Australia specific, though they generalize quite well to other countries.

We start where the paper starts, with a discussion of Australia’s heavy investment in commodity exports to China in the wake of the 2008 crisis. Many people mistook the temporary increase in demand for Australian mineral exports for a permanent change, leading them to over-invest in developing the Australian mining industry.

We go on to discuss many topics, with a particular focus on housing. We also touch on Frank’s work on Systemically Important Real Sectors (SIRS), which he is working on with co-author John F. Crean. SIRS are sectors with the potential to cause systemic problems in the banking sector. They feature high volatility of costs and revenues, which create the potential for large losses to lenders.

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discussions

  • Where is the best place to which to emigrate? OF all the places I’ve visited, I would put Australia number one. It is freer than the US, the culture and people are amazing, the technology is excellent, and it seems like the perfect happy place for me to live and work. I see no real downside at all. I know the government is terrible but so it is everywhere in the world. Second choice might be Costa Rica.

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  • Greetings, I can post Pages and reply to other people with no issue. When I publish an “Article” it cannot be visited. Searches on WordPress seem to suggest it is a problem withPermalinks and an htaccess file, but following suggestions to reassert Permalink settings has no effect. Changing the page address is no avail. Perhaps someone else has encountered this problem and solved it? example: https://theonelaw.liberty.me/2017/03/11/articlespostingfails/ Thanks for any observations

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  • There are some ways in which buying a house can be a path to independent living.   On the other hand, we’re expecting currency devaluation and the housing market is propped up on limbo rates. Is it worth taking on debt to buy? Will inflation eat away at the principal, or would you have been better off in PMs?   Have you bought recently? What factored into your decision?

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