Posts tagged…Automobiles
Trade, cars and the great recession
Wed, May 06 2009
One of my favorite trade economists, Joe Francois, has been working with Julia Woerz on the reasons we have seen such a dramatic (minus 20%) fall in nominal trade values in the past two quarters when the fall in output over the same period was serious but much smaller (minus 5%).
"The problem is not trade finance, but rather finance, full stop. This recession has been characterised by a massive…
Read more…Mandarin or doublespeak?
Tue, Dec 23 2008
OK. Here's a little Christmas Quiz. Not hard, I promise
First, read this inspiring quote from our Great Helmsman as he rouses the unions with some hearty advice and a lovely big cheque for $180m of your money. He's giving the money to them because… well, it's a Great Australian Tradition to give big chunks of money to the motor vehicle industry when they ask for it and, after all, it's only a tiny…
Automobile tariff cut irrelevant
Tue, Sep 16 2008
Why it's impossible to get too excited about the planned cut in automobile tariffs from 10% to 5% in 2010. Despite the howls of capital and the unions, the volatility of the Australian exchange rate makes a 5% margin irrelevant. Already in 2008 the trade-weighted index has fallen more than 7 percent. Click the thumbnail for a larger image.
Weaning and whining
Sat, Aug 16 2008
I know one story about an import-competing, near-basket-case, industry that turned-around with the help of government support and a re-structuring plan, to become globally competitive and an export success story.
It's not motor vehicles.
Once upon a time —in the mid-1990s—I was the CEO of the Australian Dairy Industry Council. Farmers and the processing companies they own (Murray Goulburn…
Insiders advise against car subsidies
Thu, Jul 31 2008Fighting over the remaining ten-percent tariff is pointless in the current—and medium-term—market conditions. The strong exchange rate, the strength of our terms-of-trade vis-a-vis manufactures and the remarkable competitiveness of China makes an import tax of five or even ten percent utterly irrelevant.
The real economic debate is over the size of the proposed subsidies to capital that the Labour…