The John Hyde Archives
Historic archive of articles and newspaper columns written by former Australian politician John Hyde OAM.
Monetary Policy
Unknown
Budget Fiscal Policy Monetary Policy
- A budget deficit is an unsatisfactory way to increase money supply.
- The prime role of a deficit is to conceal politicians' expenditures so that they can appear to be better managers than they actually are.
Debt
- Debt adds to the sum of human wellbeing, benefit both borrowers and lenders.
- Some governments borrow not to invest but to increase their life style.
Who were the Monetarists?
- Tight monetary controls may not work anymore due to rational cynicism
- Neither governments nor central banks are inclined to adopt monetarism
Brookings on Deficits
Budget Monetary Policy Fiscal Policy Economics
- Aside from printing money, a govt deficit must be financed by bidding for the same funds that private investors seek.
- Brookings' objection to a high budget deficit is that it will reduce economic growth by increasing consumption at the expense of investment.
- Deficits allow govts to spend money that is not raised in taxes.
The Australian Dollar
Currencies & Commodities Monetary Policy
- If the Australia dollar is unable to maintain stability internally (inflation) and externally (exchange rate), then Australians will demand payment in something else they can trust in.
Housing Interest Rates
Regulation Monetary Policy Interest Rates
- Regulated interest rates cause those that are unable to obtain regulated money to resort to hire purchase and second mortgages. They also distort housing supply.
The Stock Market and History
Politics Economics Monetary Policy
- The cause of the Great Depression was not the stock market collapse but the result of poor government policies. The politicians should allow the markets to adjust accordingly instead of intervening and making things worse.
Des Moore
- Des Moore of the IPA had two recommendations: 1) debt does matter 2) monetary policy must be tightened.
Interest Rates
Interest Rates Politics Monetary Policy
- It is impossible for the control the supply and price of money, by trying to control the price, the government lost control of the quantity.
- Paul Keating has been a stricter adherent of monetary policy than Malcolm Fraser.
The Real Exchange Rate
Currencies & Commodities Monetary Policy Economics
- The solution to our problems is to raise productivity by deregulating and privatising and encouraging saving.
- The coming devaluation of our currency will increase inflation can be prevented by increasing wages and other costs as long as necessary.
Hayden's Pearls
Politics Fiscal Policy Monetary Policy
- Lax fiscal policies lead to tough monetary policies. There should be a balance between sufficient profit and employment. OECD countries need to exercise caution in subsiding trade and trade credits with Eastern European countries.
Interest Rates
Interest Rates Monetary Policy
- Any attempt to regulate interest rates down, would be a recessive transfer of wealth from the low-income people to the middle income.
Floating the Dollar
- By floating the Australian dollar, Both Paul Keating and John Howard supported this move as it places Australia in a winning position.
Sources of Inflation
- When one sector has the capacity to expand its prices faster than an average determined by money supply, the other sectors are squeezed.
About
John Hyde OAM is a former Australian politician. He was elected as the member for the Division of Moore in Western Australia for the Liberal Party.
John Hyde OAM is the author of Dry: In Defence of Economic Freedom.