John Quiggin writes in The Guardian (12.7.16) about the implications of a credit rating downgrade for Australia’s economy, arguing that this need not be the dire result that many in the political arena (and some economists) claim.
‘The announcement by Standard & Poors that Australia’s AAA credit rating was to be placed on a negative outlook was widely greeted as a harbinger of doom.
‘In reality, however, the loss of the AAA rating would have almost no effect on our economy. More importantly, the central importance placed on the AAA rating by Australia’s political class has seriously distorted our economic policy debate.’
Additional AAA rating commentary
Richard Holden and others contributed commentary in The Conversation about the potential credit rating downgrade for Australia’s economy, and what this might signify in terms of the Coalition government’s attempts at ‘budget repair’.