During the Global Financial Crisis, many banks around the world failed spectacularly (though fortunately none in Australia or New Zealand). Some financial institutions were bailed out at enormous costs to taxpayers. Others went under, causing severe disruption to their economies.To prevent such a scenario ever playing out again must be a constant worry for any financial markets regulator and central bank.This is why the Reserve Bank of New Zealand (RBNZ) published proposals last December to increase the amount of capital... Read more

The problem with being an expert is that people regularly ask you for predictions. As if your knowledge of something would automatically let you know the future. That sure would be nice, but expertise is different from prescience.Thus, when I am asked for predictions, I usually brush it off politely. My standard line is that questions about the future should be directed to astrologers, not mortal economists.However, there are exceptions. Read more

It took the Australian Government years to decide whom to task with building its next generation submarine fleet. It was still not enough time to prepare them for the cultural clash that followed. Back in 2016, the Australian Prime Minister – Malcolm Turnbull, most probably – awarded the AU$50 billion contract to French company Naval Group over rival offers from German and Japanese firms. As the ABC recently reported, building submarines involves far more than high-tech engineering, quality materials and... Read more

When US psychologist Jonathan Haidt published The Righteous Mind in 2012, he himself may not have known how prescient it would be. The book’s subtitle is Why Good People Are Divided by Politics and Religion. Though such divisions were clearly visible even then, they were just a foretaste of what was to come. Trump, Brexit and the global surge of populism have created more politically divided societies than at any time during the past half century. Read more

Late last year, embattled Chancellor Angela Merkel resigned the leadership of her Christian Democrat CDU party and announced she would not seek a fifth term. After a tight contest, the party’s general manager Annegret Kramp-Karrenbauer succeeded Merkel as leader. It was meant to be a reset for the CDU. Read more

Flames and smoke on the roof of Notre Dame cathedral in Paris: When I saw the pictures, still half-asleep, early Tuesday morning, my first thought was the fire was so high up that perhaps some aerial firefighting support was called for. Upon further consideration, and with the benefit of having woken up by then, I realised that was a daft idea. If it had been sensible, then French firefighters would have thought of it already. Read more

Last week, we all saw the first-ever image of a black hole scientists have been able to create. Once sucked into a black hole, you get pulled apart into smithereens while time stands still. It is probably how the British Government feels right now. Read more

Since the release of the Tomorrow’s Schools report last December, the education community has been talking about nearly every aspect of school organisation: Who should govern schools? For what term lengths should principals be appointed? How should schools be funded? These questions are important. But by focusing on the organisational aspects of our education system, we are neglecting what is going on inside classrooms. How do children learn? Are our children learning? How can schools best teach students how to... Read more

“What do we want? Evidence-based policy! When do we want it? After peer review!” Read more

Of all the people in the world, former British Prime Minister David Cameron is probably the last person anyone wants to listen to on Brexit. After all, it was Cameron’s idea to hold the 2016 referendum that started the downfall. Read more

When Housing Minister Phil Twyford spoke at the Initiative’s retreat last week, I had only one regret about having invited him: Our event is held under Chatham House rules.You see, under Chatham House rules you cannot report or attribute anything that is said at the conference. This is to facilitate a free exchange of views and ideas.It was a pity because the Minister’s speech was the best political statement on urban development I ever heard. Read more

Germany and Switzerland have long been famous for exporting cars, machinery and chemicals to all parts of the world. They are now becoming well-known as exporters of their dual education model. Read more