As far as I can tell, the main criteria by which Sinclair Davidson, Judith Sloan and others who post at Catallaxy for an economist to run Treasury (or the Productivity Commission) is that they have never been identified as expressing belief in, or have worked on, matters relating to environmental causes, and climate change in particular.
Hence, Davidson says Treasury all started to go wrong when Ken Henry came in back in 2007.
Of course, one would think that an economist who went out hard on a stagflation warning two years ago might be more circumspect in criticising Treasury for getting their recent years forecasts wrong, but no...
Yes it is amazing how Davidson can ignore such a forecast made for reasons inexplicable to anyone who has studied macroeconomics.
ReplyDeleteThey still have to tell us why the cash rate is falling not rising if spending is the problem but then again evidence is something they have never really sought to gather