Macrobusiness flagged a short interview with Ann Pettifor, a highly-regarded international finance expert who is the Director of Policy Research for Macroeconomics on the ABC program The Business. Pettifor argues that economists are responsible for the bias today to over-rely on monetary policy to solve problems that can only be addressed by government spending. Leaning too heavily on monetary policy to try to address weak growth simply generates asset bubbles.
I have to confess that I have some additional motives for featuring this clip. One is that Pettifor is a very effective and persuasive speaker, particularly in making complex ideas accessible, and so I like highlighting her commentary whenever I come across it (she seemed uncharacteristically hesitant this time, and I suspect she was thrown off by the remote video link, it looks like the latency between London and Sydney was significant). The second is that the interviewer was Ticky Fullerton, who was a friend when I lived in Sydney (among other things, I cat sat her two Abyssinians for about ten days when I first arrived while she was doing a documentary in London for the ABC investigative program Four Corners). She’s ex what was then CSFB, now Credit Suisse, and gave up both finance and London to become a TV journalist down under. So I’m glad to see she’s continuing to do well.