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"Am I dreaming?": Prince William serves up burgers from food van

<p>The Prince of Wales has stunned a few unsuspecting customers of a London food truck by serving them burgers. </p> <p>In collaboration with popular YouTube channel<em> Sorted Food</em>, Prince William took part in the stunt to promote The Earthshot Prize, a mission he founded in hopes to repair the planet. </p> <p>They worked together to create a plant-based 'Earthshot burger', which they served to customers, in the clip shared on YouTube. </p> <p>As part of the stunt, Prince William first hid his identity by facing away from the customers, when it was time to serve the food, he turned around with burgers in hand to the shock of the diners. </p> <p>"My brain took three seconds to buffer - am I dreaming?" one said after seeing Prince William serving burgers. </p> <p>"I was lost for words," said another. </p> <p>"I was shell-shocked" said a third. </p> <p>The Prince of Wales also praised last year's Earthshot Prize winners, and explained that the dishes served used three of their innovations, which all represented a solution to help repair the planet. </p> <p>"For those of you who don't know, the Earthshot Prize is there to repair and regenerate the planet. Everything you see here comes from the winners from last year," he said.</p> <p>The ingredients for the burgers were sourced by Indian start-up Kheyti, who support local farmers and help shelter their crops from unpredictable weather events and pests. </p> <p>The burgers were cooked in a cleaner-burning portable stove from Mukuru Clean Stoves, which aims to reduce air pollution, and the food was served on Notpla takeaway containers made from natural and biodegradable materials. </p> <p>This is the verdict from the diners: "the best burger we've ever had."</p> <p>The Prince also joked with diners saying that the global Earthshot Prize started back when he "had hair."</p> <p>"It's designed as an environmental prize tackling the world's greatest environmental problems,"  he said. </p> <p>"We liked the idea that this is a big deal, this is like something we really need to aim for, but it's about saving the planet, not taking us to the moon."</p> <p>He added:  "And there's many people out there who want us to move to the next planet already and I'm like, hang on, let's not give up on this planet yet."</p> <p><em>Images: Kensington Palace/ Sorted Food YouTube</em></p>

Food & Wine

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Archibald prize finalists unveiled

<p dir="ltr"> The 2023 Archibald prize’s 57 finalists have been revealed by the Art Gallery of NSW. </p> <p dir="ltr">With portraits by an entire host of exceptionally talented artists, the award - as well as its $100,000 prize - will be presented to the best portrait of a person who is “distinguished in art, letters, science or politics” that has been painted by a resident of Australia.</p> <p dir="ltr">The 2023 competition also made history with its batch of finalists, as for the first time ever, more works by women were selected than works by men - 30 to 27. In total, the competition drew in an impressive 949 submissions. </p> <p dir="ltr">All three competitions - Archibald, Wynne, and Sulman - also saw a record number of entries and finalists by Aboriginal artists, at 101 entries and 38 finalist pieces. </p> <p dir="ltr">And while the overall winners won’t be announced until May 5, the Archibald Packing Room Prize 2023 winner has been revealed: a portrait of comedian Cal Wilson by Andrea Huelin.</p> <p dir="ltr">“I can’t tell you how happy I am to receive this,” the artist confessed after learning of her win. “It means such a lot to me as an artist from a regional centre to win.”</p> <p dir="ltr">The Packing Room Prize was selected by a team of three expert packers with 19 years of experience between them, and for the first time included two women - Monica Rudhar and Alexis Wildman - alongside Timothy Dale. </p> <p dir="ltr">The prize, which began in 1991 and is worth $3000, is referred to as ‘the kiss of death’ by artists when it comes to selecting the overall Archibald winner. </p> <p dir="ltr">“Andrea’s work jumped out at us as soon as it arrived,” they said of their selection. “Cal’s been such a mainstay on Australian television for two decades.”</p> <p dir="ltr">As Michael Brand - director of the Art Gallery of NSW - explained, the decision had been reached “equally” by the trio. </p> <p dir="ltr">Many other well-known faces were captured across the 57 finalists, with portraits of everyone from Cold Chisel’s Don Walker to Aboriginal activist Archie Roach, Silverchair’s Daniel Jones, NRL’s Latrell Mitchell, politicians Yvonne Weldon and Alex Greenwich, and actor Sam Neill. </p> <p dir="ltr">And for anyone who would like to admire the paintings in person, the finalists of all three competitions will be on display at the gallery from May 6 to September 3.</p> <p dir="ltr">Meanwhile, all 57 portraits are available to <a href="https://www.artgallery.nsw.gov.au/prizes/archibald/2023/">view on the Art Gallery of NSW’s website</a>.</p> <p dir="ltr"><em>Images: Art Gallery of NSW </em></p>

Art

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Australians lost more than $3bn to scammers in 2022. Here are 5 emerging scams to look out for

<p>The Australian Competition and Consumer Commission’s latest <a href="https://www.accc.gov.au/system/files/Targeting%20scams%202022.pdf">Targeting Scams report</a> indicates Australians reported more than A$3 billion lost to fraud in 2022. This is about a $1 billion increase on <a href="https://theconversation.com/australians-lost-2b-to-fraud-in-2021-this-figure-should-sound-alarm-bells-for-the-future-186459">reported losses from 2021</a>.</p> <p>Year upon year, we’re witnessing a rise in monetary losses to fraud. Behind these figures sit millions of Australians who experience a range of financial and non-financial <a href="https://www.aic.gov.au/sites/default/files/2020-05/29-1314-FinalReport.pdf">harms</a>.</p> <p>Here’s what we’ve learned from the latest report – and some advice on what to look out for in the year ahead.</p> <h2>2022 at a glance</h2> <p>Of the reported $3 billion lost, about half was stolen as part of investment schemes – more than double the $701 million figure from 2021. A desire to invest in cryptocurrency has driven up these losses, with potential investors inadvertently transferring money to offenders advertising a range of falsehoods.</p> <p>Remote access schemes – in which a scammer convinces the victim to grant them access to their computer – jumped into second place, with $229 million in reported losses. This was followed by payment redirection scams (also known as business email compromise fraud).</p> <p>Those who reported directly to Scamwatch lost an average of $19,654 – an increase of 54% from the $12,742 reported in 2021.</p> <p>The report also shows not all victims are targeted equally; people aged 65 years and older reported the highest losses across all demographics. Indigenous Australians, people with a disability, and those from culturally and linguistically diverse backgrounds were also overrepresented.</p> <p>For the first time in many years, text message was the most popular method for offenders to target victims. And while bank transfers were the most popular way to send funds to offenders, <a href="https://theconversation.com/crypto-theft-is-on-the-rise-heres-how-the-crimes-are-committed-and-how-you-can-protect-yourself-176027">cryptocurrency transfers</a> continue to increase in popularity – rising 162.4% in one year.</p> <p>There was, however, a reduction in fraudulent phone calls. This is likely attributable to the introduction of <a href="https://www.commsalliance.com.au/__data/assets/pdf_file/0015/72150/C661_2022.pdf">regulatory action</a> to block known scam calls. It’s a bright spot in an otherwise dark report.</p> <h2>Trends to look out for</h2> <p>The Targeting Scams report demonstrates the many ways offenders seek to defraud victims. On one hand, people are becoming more aware of common scam tactics. On the other, criminals are adjusting their methods to gain the upper hand.</p> <p>Here are five types of relatively lesser-known frauds everyone should be aware of.</p> <p><strong>1. Romance baiting</strong></p> <p>Also known as “<a href="https://news.sophos.com/en-us/2021/05/12/fake-android-and-ios-apps-disguise-as-trading-and-cryptocurrency-apps/">cryptorom</a>” or “<a href="https://krebsonsecurity.com/2022/07/massive-losses-define-epidemic-of-pig-butchering/">pig butchering</a>”, this scam is a convergence of investment fraud and traditional romance fraud approaches.</p> <p>The offender first initiates a relationship with the victim – through dating apps, websites or social media platforms. Once they’ve established trust, they encourage the victim to put their money into an “investment” opportunity, often cryptocurrency. The victim will then unknowingly transfer their money to the offender, who is under a different guise.</p> <p>This kind of romance baiting raises fewer red flags than directly asking for money, and is targeting a younger demographic compared to more traditional romance fraud.</p> <p>Such deceptions are coded under investment schemes. This is likely driving the surge in investment scheme losses reported in recent years, while also accounting for a lack of substantial increases in romance fraud.</p> <p><strong>2. Online shopping fraud</strong></p> <p>Offenders are skilled at creating fake websites and product advertisements that look genuine.</p> <p>Often these fake sites will have only subtle differences from their real counterparts. Consumers may not be able to tell the difference. Criminals can directly access funds through victims’ credit card details obtained on these sites.</p> <p>Online shopping fraud targets a range of demographics. It’s happening on stand-alone websites, social media platforms and online marketplaces.</p> <p><strong>3. Jobs and employment fraud</strong></p> <p><a href="https://research.qut.edu.au/centre-for-justice/wp-content/uploads/sites/304/2022/02/Briefing-Paper-Series-Feb2022-Issue21-17022022.pdf">Research</a> has indicated that working from home and flexible working conditions are strong indicators of a fraudulent job listing.</p> <p>But in a post-COVID world, flexibility at work is often a key criterion for job seekers, if not a deal-breaker. Offenders have noticed this, and are responding by posting attractive job advertisements that offer flexibility and high incomes.</p> <p>Victims submit their CVs and personal credentials (setting themselves up for identity crime), or may be required to pay upfront for training or materials costs for a job that doesn’t exist.</p> <p>Employment scams are targeting younger people in particular, as they’re more likely to have <a href="https://australiainstitute.org.au/report/youth-unemployment-and-the-pandemic/">experienced job loss and insecurity</a> in the wake of the pandemic.</p> <p><strong>4. Recovery schemes</strong></p> <p>Many fraud victims will want to take whatever action possible to recover lost funds.</p> <p>To exploit this, offenders will trade the details of victims with each other. They will then pose as authorities (often law enforcement, banks or private agencies) who are aware of the victim’s circumstances and promote their ability to regain the missing funds for a fee.</p> <p>In this way, victims who are desperate to recover losses are manipulated into paying even more money to offenders.</p> <p><strong>5. Remote access schemes</strong></p> <p>Receiving a phone call from a computer technician advising of a problem with your computer and offering to fix it is a common experience for many. While this approach isn’t new, it made a strong resurgence in 2022 – particularly targeting older people.</p> <p>These scam calls often come through landlines and prey on people’s fear for the security of their bank details and other personal data. The fraudsters often invoke a sense of urgency about needing to rectify the “problem”, and victims are persuaded to give the offender remote access to their computer.</p> <p>The criminal can then access a wealth of personal information. They can gain direct entry to bank accounts to transfer funds, and can access identity credentials and other sensitive details to commit identity crime in the future.</p> <h2>Change is needed to protect the public</h2> <p>The threat of fraud will only increase alongside technological evolution. Experts are concerned about artificial intelligence tools such as <a href="https://www.theguardian.com/technology/2023/mar/08/darktrace-warns-of-rise-in-ai-enhanced-scams-since-chatgpt-release">ChatGPT</a> and image and video generators giving cybercriminals yet another tool to add to their arsenal.</p> <p>The latest Scamwatch report is further evidence banks and financial institutions need to implement measures to help reduce fraud losses; among these, the checking of account names against BSB numbers for all transactions. The UK has a <a href="https://www.ukfinance.org.uk/policy-and-guidance/guidance/confirmation-payee">confirmation-of-payee</a> policy that does this.</p> <p>The government is attempting to address the continued surge in fraud losses through the revision of its <a href="https://www.homeaffairs.gov.au/about-us/our-portfolios/cyber-security/strategy/2023-2030-australian-cyber-security-strategy">cybersecurity strategy</a> and the potential establishment of a <a href="https://consultation.accc.gov.au/accc/national-anti-scams-centre-survey/">National Anti-Scams Centre</a>.</p> <p>These are both positive steps but it’s clear there’s a need for more work to be done.</p> <p><em>Image: Getty</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/australians-lost-more-than-3bn-to-scammers-in-2022-here-are-5-emerging-scams-to-look-out-for-204018" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Money & Banking

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"This doesn’t feel right, does it?": Photographer admits Sony prize-winning photo was AI generated

<p>A German photographer is refusing an award for his prize-winning shot after admitting to being a “cheeky monkey”, revealing the image was generated using artificial intelligence.</p> <p>The artist, Boris Eldagsen, shared on his website that he would not be accepting the prestigious award for the creative open category, which he won at <a href="https://www.oversixty.com.au/entertainment/art/winners-of-sony-world-photography-awards-revealed" target="_blank" rel="noopener">2023’s Sony world photography awards</a>.</p> <p>The winning photograph showcased a black and white image of two women from different generations.</p> <p>Eldagsen, who studied photography and visual arts at the Art Academy of Mainz, conceptual art and intermedia at the Academy of Fine Arts in Prague, and fine art at the Sarojini Naidu School of Arts and Communication in Hyderabad released a statement on his website, admitting he “applied as a cheeky monkey” to find out if competitions would be prepared for AI images to enter. “They are not,” he revealed.</p> <p>“We, the photo world, need an open discussion,” Eldagsen said.</p> <p>“A discussion about what we want to consider photography and what not. Is the umbrella of photography large enough to invite AI images to enter – or would this be a mistake?</p> <p>“With my refusal of the award I hope to speed up this debate.”</p> <p>Eldagsen said this was an “historic moment” as it was the fist AI image to have won a prestigious international photography competition, adding “How many of you knew or suspected that it was AI generated? Something about this doesn’t feel right, does it?</p> <p>“AI images and photography should not compete with each other in an award like this. They are different entities. AI is not photography. Therefore I will not accept the award.”</p> <p>The photographer suggested donating the prize to a photo festival in Odesa, Ukraine.</p> <p>It comes as a heated debate over the use and safety concerns of AI continue, with some going as far as to issue apocalyptic warnings that the technology may be close to causing irreparable damage to the human experience.</p> <p>Google’s chief executive, Sundar Pirchai said, “It can be very harmful if deployed wrongly and we don’t have all the answers there yet – and the technology is moving fast. So, does that keep me up at night? Absolutely.”</p> <p>A spokesperson for the World Photography Organisation admitted that the prize-winning photographer had confirmed the “co-creation” of the image using AI to them prior to winning the award.</p> <p>“The creative category of the open competition welcomes various experimental approaches to image making from cyanotypes and rayographs to cutting-edge digital practices. As such, following our correspondence with Boris and the warranties he provided, we felt that his entry fulfilled the criteria for this category, and we were supportive of his participation.</p> <p>“Additionally, we were looking forward to engaging in a more in-depth discussion on this topic and welcomed Boris’ wish for dialogue by preparing questions for a dedicated Q&A with him for our website.</p> <p>“As he has now decided to decline his award we have suspended our activities with him and in keeping with his wishes have removed him from the competition. Given his actions and subsequent statement noting his deliberate attempts at misleading us, and therefore invalidating the warranties he provided, we no longer feel we are able to engage in a meaningful and constructive dialogue with him.</p> <p>“We recognise the importance of this subject and its impact on image-making today. We look forward to further exploring this topic via our various channels and programmes and welcome the conversation around it. While elements of AI practices are relevant in artistic contexts of image-making, the awards always have been and will continue to be a platform for championing the excellence and skill of photographers and artists working in the medium.”</p> <p><em>Image credit: Sony World Photography Awards</em></p>

Technology

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Breathtaking shots from the 2022 Travel Photographer of the Year

<p>The winners of the 2022 Travel Photographer of the Year have been announced, showcasing stunning photography with a focus on conservation and sustainability. </p> <p>The competition, regarded as one of the world’s most prestigious photography competitions, received nearly 20,000 entries from both amateur and professional photographers in 154 different countries. </p> <p>The top prize went to Slovenian photographer Matjaz Krivic who submitted a stunning shot of one of the world’s last two remaining northern white rhinos. Najin, the 33-year-old rhino, was pictured with her keeper, Zachary Mutai. </p> <p>The picture was shot in Kenya’s Ol Pejeta Conservancy and demonstrates the impact of the Cumbre Vieja volcano’s eruption on La Palma’s landscape. </p> <p>As the judges commented, Krivic told their story “beautifully and sensitively. The images are tender and intimate.”</p> <p>“I am honoured to have my work recognised and acknowledged by the judges of the Travel Photographer of the Year competition …” Krivic said of his win. “Travel and photography has been my passion and a big part of my life since I can remember and this award inspires me to continue with my journey.”</p> <p>A 14-year-old Australian, who now lives in Portugal, took home the Young Travel Photographer of the Year award. Kaia Tham’s work is shot solely on an iPhone, and the judges praised this choice by commenting, “seeing the world in a different way and exploring it with a phone rather than a camera has given this young photographer’s portfolio a fresh feel and a different perspective observing the streets of Lisbon.”</p> <p>Two other Australians received acknowledgement for their work, securing themselves special mentions from the judges - Jason Edwards with one, and Scott Portelli with three.</p> <p>2022’s People’s Choice award went to Romain Miot from France. This award is the only category in which the judges have no say on the winner - the 130 finalists are instead voted on by the general public. </p> <p>Miot’s work features a salt caravan in Mauritania’s Sahara Desert. Of the photograph, Miot said, “when I returned from the trip, I realised that this image of a camel owner ordering the dromedaries looked like a conductor with an orchestra.”</p> <p>The photos from the 2022 awards will be exhibited in May at the Royal Photographic Society as part of World Photography in Focus, ahead of the 21st Travel Photographer of the Year awards for 2023.</p> <p><em>All image credits: 2022 Travel Photographer of the Year </em></p>

International Travel

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Pat Rafter delves into “rift” between Ash Barty and US player

<p>Aussie great Pat Rafter has opened up about the tension during Ash Barty’s match against her 2022 Australian Open final opponent, Danielle Collins.</p> <p>The now retired tennis star smashed the American 6-3 7-6 (7-2) which saw Barty claim her first home slam and the third of her career.</p> <p>Almost 12 months later, Rafter has opened up about the tension the pair had in which Barty didn’t want to lose to the American star and vice versa.</p> <p>“I knew with her and Danielle, they had a bit of a … what’s the word? There was no love lost anyway,” Rafter told reporters ahead of the United Cup.</p> <p>“Danielle’s pretty feisty. And Ash didn’t want to lose to her.”</p> <p>He said that there was a bit of worry when he saw Barty get “rattled” on court before getting out of her head and smashing the game.</p> <p>“It was pretty funny, I don’t know how much you can pick up on the on-court subtleties of it but I’m pretty aware of Ash and I understand where her mind’s at and I can see all her little movements and ticks,” Rafter continued.</p> <p>“I was going, ‘oh no, she’s getting rattled, she’s not good’. But she was able to pull it out which was pretty important.</p> <p>“I would have hated to see her get to the final and lose because she was the dominant player. I like seeing the best players win.”</p> <p>After her successful win, the now 26-year-old shocked the tennis world by announcing her retirement from the game.</p> <p>She recently got married to her longtime partner Garry Kissick and is currently working at Optus.</p> <p><em>Image: Getty</em></p>

News

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What explained the seismic 2022 federal election?

<p>The 2022 Australian federal election was distinctive in two ways.</p> <p>First, it was held in the wake of a major crisis – the COVID-19 pandemic. While the salience of the pandemic had subsided by the time of the election, voters’ assessments of the Coalition government’s performance on the pandemic proved to be a major factor in their voting decision, as did the cost of living crisis it helped create.</p> <p>Second, almost one in three voters cast their ballots for a minor party or independent candidate, the highest since the 1930s. Of the two major parties, the Liberals fared worst, winning their lowest seat share since 1946 (the first election the party contested). But Labor didn’t reap the benefits of this Liberal decline, with the party recording its lowest primary vote since the 1930s.</p> <p>What explains this seismic result, and what does it tell us about the future of electoral politics in Australia?</p> <p>Using the just-released 2022 Australian Election Study (AES) – a comprehensive post-election survey conducted at each election since 1987 – we can answer these questions.</p> <h2>Why the Coalition lost</h2> <p>A perception of poor government performance played a key role in the Coalition defeat. In 2022 there were three performance explanations for the Coalition’s defeat – the economy, the pandemic, and Scott Morrison’s leadership.</p> <p>With rising inflation and a cost of living crisis, around two-thirds of voters thought the economy had worsened in the 12 months leading up to the election. This was the most pessimistic view of the economy in over three decades.</p> <p>In previous elections, voters have usually preferred the Coalition over Labor on economic issues. In 2022, however, voters preferred Labor over the Coalition on the cost of living – the single biggest issue in the election.</p> <p>The Coalition’s performance on the pandemic was also regarded as unsatisfactory. Just 30% of Australians thought the federal government had handled the pandemic well. Indeed, voters had much more favourable views of their state governments’ performance. Because virtually the whole period between the 2019 and 2022 elections was dominated by the pandemic, the public’s evaluations of the Morrison government’s performance were therefore closely associated with the pandemic.</p> <p>The third reason for the Coalition defeat was the negative opinions many voters formed of Morrison’s leadership. While Morrison was generally popular when he won the election in 2019, by 2022 he had become the most unpopular major party leader since at least 1987. Morrison wasn’t considered honest and trustworthy, two of the traits most closely associated with how favourable we view leaders. The public’s dislike of Morrison has its origins in his Hawaii holiday during the 2019-20 bushfires, and was strengthened by a perception of poor performance in the second year of the pandemic.</p> <h2>Labor’s ‘victory by default’</h2> <p>Labor won the election despite their record low vote and a 0.8% swing against them. Indeed one newspaper <a href="https://www.theaustralian.com.au/nation/politics/anthony-albanese-wins-but-its-a-victory-by-default-for-labor/news-story/75b7d87c9b61157a16dc6d772c306deb" target="_blank" rel="noopener">described</a> it as a “victory by default”.</p> <p>During the election campaign, Labor adopted a “small target” strategy. While Labor fought the 2019 election on ambitious proposals for tax reform, in the 2022 election they avoided putting forward policies that would deter voters, and emphasised their policy agreement with the Coalition – even promising to keep the Coalition’s stage three income tax cuts.</p> <p>The effects of this change in Labor strategy are evident in the AES data. Fewer voters cast their ballots based on policy preferences than in 2019, and the proportion of voters who saw “a good deal of difference” between the parties declined from 40% in 2019 to 28% in 2022.</p> <p>Labor also entered the election with Anthony Albanese as leader, who was more popular than both Scott Morrison and Labor’s predecessor, Bill Shorten. The previous majority government win for Labor in 2007 was one that generally inspired voters. Indeed in 2007, Kevin Rudd was the most popular prime minister in the history of the AES, and satisfaction with democracy was at a record high at that time.</p> <p>By contrast, Labor’s 2022 win was more about directing attention to the Coalition’s weak performance, rather than putting forward a policy agenda that was really attractive to voters.</p> <h2>The big movers: women and young people</h2> <p>The 2022 election brought into sharp focus two major changes in party support that have been slowly eroding the social bases of the major parties: gender and generation.</p> <p>There’s a significant gender gap in voter behaviour – since the early 2000s, fewer women have voted for the Coalition than men. Labor has the opposite gender voting gap, attracting more votes from women than men (though to a lesser extent).</p> <p>Since 2016, the gender gap in voting has been greater than in all previous elections covered by the AES. In 2022 just 32% of women voted for the Coalition, the lowest share ever. One contributing factor to this collapse in female support for the Coalition is the treatment of women within the Liberal party.</p> <p>The divide between how younger and older generations of Australians vote is more pronounced than the gender gap. Millennials (the oldest of whom are now in their 40s) and Generation Z (those born after 1996) make up an increasing proportion of the electorate, greatly outnumbering Baby Boomers.</p> <p>These younger generations have different voting patterns to previous generations at the same stage of life, and are also much further to the left in their party preferences. Just 27% of Millennials said they voted for the Coalition in 2022.</p> <p>At no time in the 35-year history of the AES has there been such a low level of support for either major party among younger people.</p> <p>The assumption that Millennials and Gen Z will shift to the right as they age hasn’t been supported by the evidence thus far. Which generation one is in seems to have a much more significant effect on voting behaviour than one’s age.</p> <p>Therefore, the implication is the electorate is moving further to the left and becoming more progressive across a range of policy areas.</p> <h2>Increasing voter volatility</h2> <p>As the traditional social bases of the major parties have gradually changed, so too have the political ties that have bound voters to parties. Around one in four voters say they don’t have an attachment to a political party, the highest figure ever recorded in the AES. The proportion of voters who considered voting for another party during the election campaign, at 36%, has at no time been higher.</p> <p>This is reflected most dramatically in the proportion of voters who said they had always voted for the same party. In 1967 this figure was 72%, and in 2022 it declined to an all-time low of 37%.</p> <h2>What now for the party system?</h2> <p>If voters are drifting away from the major parties, who are they choosing instead and what are the implications for the party system?</p> <p>The “teal” independents were obviously an important beneficiary. However, most teal voters were former Labor and Green voters casting a tactical vote to unseat a Liberal candidate. The medium-term fate of the teals will depend on how far they can create a distinct political identity to hold their support together at the 2025 election. More broadly, support for minor parties and independent candidates will continue to increase.</p> <p>The gradual changes in voting behaviour that are taking place, and which were especially pronounced in the 2022 election, represent an existential crisis for the Liberals. With their support base declining through generational replacement, they must not only attract new voters but also stem defection to give themselves a chance of election.</p> <p>As the political agenda moves towards support for action on climate change, constitutional recognition for Aboriginal and Torres Strait Islander people, and (perhaps) moving to a republic – all issues on which the Coalition is divided – it’s unclear where these new voters will come from.</p> <p><strong>This article originally appeared on <a href="https://theconversation.com/what-explained-the-seismic-2022-federal-election-the-australian-election-study-has-answers-195286" target="_blank" rel="noopener">The Conversation</a>.</strong></p> <p><em>Images: Getty</em></p>

Legal

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Happy Howlidays! Most popular pet names of 2022 revealed

<p>The top pet names for 2022 are in, with Luna, Bella and Archie continuing to dominate lists, with a few extra names making their debuts.</p> <p>Luna was the top name for female cats and dogs, while Archie and Charlie are the winners for male dogs.</p> <p>The list was complied by Pet Insurance Australia and showed the top trending names for cats and dogs born in 2022. “It's lovely to explore these lists every year to see the current trends with pet names,” Nadia Crighton from Pet Insurance Australia said.</p> <p>The top name for a male dog was Milo, according to the insurer's data, while the top name for a male cat was Ollie, which ranked in seventh place for dogs.</p> <p>Female cats appeared to be named after pantry staples, with Pepper, Maple, Biscuit and Candy all making the list.</p> <p>Male cats were more likely to have names common among children, including Ollie, Archie, Charlie, Sam, Teddy and Ziggy.</p> <p>While female dogs continue to carry on with monikers that have been able to pass the tests of time – including Daisy, Bella, Ruby, Molly and Lola.</p> <p>Top male cat names:</p> <ol> <li>Ollie</li> <li>Archie</li> <li>Charlie</li> <li>Chino</li> <li>Floyd</li> <li>Loki</li> <li>Sam</li> <li>Snowy</li> <li>Teddy</li> <li>Ziggy</li> </ol> <p>Top female cat names:</p> <ol> <li>Luna</li> <li>Pepper</li> <li>Maple</li> <li>Winnie</li> <li>Angel</li> <li>Audrey</li> <li>Baby</li> <li>Biscuit</li> <li>Candy</li> <li>Charlotte</li> </ol> <p>Top male dog names:</p> <p>1. Milo</p> <p>2. Teddy</p> <p>3. Archie</p> <p>4. Charlie</p> <p>5. Buddy</p> <p>6. Murphy</p> <p>7. Ollie</p> <p>8. Alife</p> <p>9. Leo</p> <p>10. Ziggy</p> <p> </p> <p>Top female dog names:</p> <p>1. Luna</p> <p>2. Daisy</p> <p>3. Bella</p> <p>4. Ruby</p> <p>5. Coco</p> <p>6. Molly</p> <p>7. Nala</p> <p>8. Lola</p> <p>9. Winne</p> <p>10. Maggie</p> <p><em>Images: Getty</em></p>

Family & Pets

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Better Homes & Gardens host selling her prized family hideaway

<p dir="ltr">After downsizing 20 years ago, Noni Hazlehurst looks like she’ll be doing it again after listing her home in Queensland’s Gold Coast hinterland for sale.</p> <p dir="ltr">The <em>Better Homes &amp; Gardens </em>host was nearing the end of her decade-long stint on the show when she swapped her Blue Mountains property for The Gables in 2002 for $749,000.</p> <p dir="ltr">With her two sons now all grown up, Halelhurst’s Tamborine Mountain property will be going under the hammer next month, as the TV presenter looks for another, smaller place to call home.</p> <p dir="ltr">“I’m in the downsizing phase of my life again,” the 69-year-old said. </p> <p dir="ltr">“My family is dispersed, as families tend to do, and so it’s got too much, so it’s time.”</p> <p dir="ltr">Since she purchased it 22 years ago, Hazlehurst has put plenty of work into the four-bedroom, three-bathroom home, including updating the kitchen and bathrooms.</p> <p dir="ltr">But, the former <em>Play School</em> presenter said it was the gardens that were a “labour of love”.</p> <p dir="ltr">“There was a tropical garden here already here, but I’ve put in about nine different kinds of magnolias, some huge gardenia bushes, hydrangea and jasmine,” she said.</p> <p><span id="docs-internal-guid-1f07179d-7fff-4285-6a7e-252eee73fc8d"></span></p> <p dir="ltr">“The jacaranda is about to pop, the agapanthus are going nuts, and there are avocado trees and two mulberry trees.</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/CBSRkxNnqJC/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/CBSRkxNnqJC/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by Noni Hazlehurst (@realnonihazlehurst)</a></p> </div> </blockquote> <p dir="ltr">“It has this rich, red volcanic soil here that is just so fertile, you can almost watch things growing. And we get proper seasons and real winters with log fires, and summer rarely gets above 30 [degrees].”</p> <p dir="ltr">Hazlehurst moved from the Blue Mountains with little knowledge of the Gold Coast area and had fallen “in love with the environment” after visiting a nearby friend’s house.</p> <p dir="ltr">Now that she’s looking for a new home, her love for the area means she won’t be looking too far.</p> <p dir="ltr">“I’ve always wanted this sort of semi-rural environment, so I’ll try to replicate this but on a smaller scale,” she said.</p> <p dir="ltr">The property itself is described as having an “enchanted forest feel” in <a href="https://www.realestate.com.au/property-house-qld-tamborine+mountain-140849184" target="_blank" rel="noopener">the listing</a>, hidden partially by the greenery Hazlehurst put her love into.</p> <p dir="ltr">“Downsizing after raising the family here, the owner finds it time to move on, making way for a new generation to enjoy and cherish this beautiful home and garden,” the listing reads.</p> <p dir="ltr">Inside, the house boasts a “library room”, as well as high ceilings, timber floors and lattice windows, and several ornate fireplaces.</p> <p dir="ltr">The house will be auctioned through Ray White Rural at 10.30am on Friday, December 16.</p> <p dir="ltr"><span id="docs-internal-guid-f1d2b7c9-7fff-5a67-588c-6103540f0268"></span></p> <p dir="ltr"><em>Images: Ray White / @realnonihazlehurst (Instagram)</em></p>

Real Estate

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Puzzles Issue 2 2022 Answers

<p>Spring is in full swing, and while there are few things more satisfying than glimpses of sunshine and watching the flowers bloom, do NOT forget the satisfaction to be gained from a round of solid puzzles done well.</p> <p>To that end, Issue Number Two of the new OverSixty Newspaper is packed with tricky Crosswords, Sudokus, Word Finders and more for your entertainment and to keep that grey matter limbered up.</p> <p>So! Without further ado, here are the solutions to <a href="https://over60newspapers.azurewebsites.net/Over_Sixty_Winter_2022_Digital/30/" target="_blank" rel="noopener">all of the puzzles from Issue 2</a> of the FREE OverSixty Newspaper. Enjoy!</p> <p><strong>Mixed-Up Crossword Answers:</strong></p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/10/O60_PuzzleAnswers_Spring2022_crossword.jpg" alt="" width="1280" height="1276" /></p> <p> </p> <p><strong>Sudoko Answers:</strong></p> <p><strong><img src="https://oversixtydev.blob.core.windows.net/media/2022/10/O60_PuzzleAnswers_Spring2022_sudoku.jpg" alt="" width="1280" height="1278" /></strong></p> <p> </p> <p><strong>Rearrange Answer:</strong></p> <p>We asked you to rearrange these letters to form a single word: <strong>glycerine fit</strong></p> <p><strong style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;">SOLUTION: ELECTRIFYING</strong></p> <p> </p> <p><strong>Word Finder Answers:</strong></p> <p>We found all of these words below in this issue's Word Finder. Did you find any more? Let us know via <a href="mailto:newspaper@oversixty.com.au" target="_blank" rel="noopener">newspaper@oversixty.com.au</a></p> <ol> <li>ACNE</li> <li>ACTS</li> <li>ANEW</li> <li>BANE</li> <li>BANK</li> <li>CANE</li> <li>CITE</li> <li>ENACT</li> <li>ANACTS</li> <li>FACE</li> <li>FACET</li> <li>FACETS</li> <li>FACT</li> <li>FACTS</li> <li>FANE</li> <li>FITS</li> <li>GETS</li> <li>GUST</li> <li>KEGS</li> <li>KNEW</li> <li>NEGUS</li> <li>NETS</li> <li>PICA</li> <li>PICT</li> <li>PICTS</li> <li>PITS</li> <li>RUGS</li> <li>RUST</li> <li>RUSTIC</li> <li>STEW</li> <li>SUET</li> <li>SURGE</li> <li>URGE</li> <li>VICE</li> <li>WEAN</li> <li>WETS</li> </ol> <p> </p> <p><strong>Word Circles Answer:</strong></p> <p>We asked you to unscramble the letters in each circle to produce two words with similar meanings.</p> <p><strong>SOLUTION: BROCHURE, PAMPHLET</strong></p> <p> </p> <p><strong>Word Ladder Answer:</strong></p> <p>For this puzzle we asked you to turn OIL into GAS by altering a single letter at each of four steps, guided by the clues below.</p> <p><strong>SOLUTION:<br /></strong><strong>OIL<br />NIL (Nothing)<br />NIP (Pinch)<br />NAP (Doze)<br />GAP (Aperture)<br />GAS</strong></p>

Mind

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Pensioners slam budget that “left them behind”

<p dir="ltr">Two Aussie pensioners have slammed Labor’s budget saying they have been left behind as the cost of living continues to soar. </p> <p dir="ltr">Lyn and Des Wicks from the Gold Coast recalled how Labor was meant to be helping low and middle income earners but have instead abandoned them in the 2022 Budget.</p> <p dir="ltr">Ms Wicks said she was “angry” at the government for not looking after pensioners and is worried about the future. </p> <p dir="ltr">"You don't want handouts, but - we're speaking on behalf of pensioners who are really doing it hard. We've got savings but we are dipping into it,” she told The Today Show. </p> <p dir="ltr">"It's just not fair. It's just the low income and the people, they haven't given us any hope and, you know, hope is happiness, happiness is health, you know, they are being - it's a false economy as far as I'm concerned."</p> <p dir="ltr">The couple’s biggest concern is the increase in prices of electricity and fuel which were barely mentioned in the budget. </p> <p dir="ltr">She explained that the budget did not look at those on the full pension, only those who are partially retired. </p> <p dir="ltr">Because of their health issues, Mrs and Mr Wicks are unable to take heed from the government’s advice of going back to work. </p> <p dir="ltr">"Even if I could I wouldn't, because I have worked 52 years and I think I'm entitled to a few years of retirement,” she said. </p> <p dir="ltr"><strong>Click <a href="https://oversixty.com.au/finance/money-banking/big-winners-and-losers-of-the-2022-federal-budget" target="_blank" rel="noopener">here</a> for the winners and losers of the 2022 Budget. </strong></p> <p dir="ltr"><em>Image: Today Show</em></p>

Retirement Life

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Big winners and losers of the 2022 federal budget

<p dir="ltr">The Albanese government has shared their first budget since being in power, with little to be done to help everyday Aussies with the ongoing cost of living crisis.</p> <p dir="ltr">Treasurer Jim Chalmers said Australia cannot afford to “spray money around indiscriminately”, although there were real winners in Labor's first Federal Budget in almost a decade.</p> <p dir="ltr">Parents, students, seniors, first home buyers and Australians needing medication have been put forward in the budget, with the government assuring to spend the money needed to help Aussies doing it tough.</p> <p dir="ltr">When it comes to losers, low and middle income earners, renters and young Australians won’t be receiving any handouts from the government.</p> <p dir="ltr"><strong>Winners</strong></p> <p dir="ltr"><strong>Australians who need medication</strong></p> <p dir="ltr">From the beginning of next year, the minimum cost of each script will drop from $42.50 to $30, with the government picking up the difference.</p> <p dir="ltr">The Budget estimates this will save about 3.6 million Australians more than a combined $190 million a year</p> <p dir="ltr">Dozens more prescriptions will also be added to the scheme at a cost of $1.4 billion to the Budget, saving patients who need them thousands of dollars.</p> <p dir="ltr"><strong>First home buyers</strong></p> <p dir="ltr">As Australia’s population grows, the government wants a million new homes built over the next five year.</p> <p dir="ltr">For its part, a $10 billion grant to a Housing Australia Future Fund will be set up, interest from which will be used to deliver 30,000 social and affordable homes over the half a decade.</p> <p dir="ltr">A more limited assistance scheme will help 10,000 first homebuyers in regional areas by guaranteeing up to 15 per cent of the purchase price.</p> <p dir="ltr"><strong>Seniors</strong></p> <p dir="ltr">Homeowners aged 55 and over are eligible for a tax break on a one-off post-tax contribution to their superannuation of up to $300,000 after selling their home.</p> <p dir="ltr">The Budget also extends the asset test exemption for pensioners to downsize their homes without losing any of their payments.</p> <p dir="ltr">Age and veteran pensioners will also get a one-off $4,000 tax credit to increase how much they can earn, from $7,800 to $11,800 without having their payments cut so they can work longer hours if they choose to go back to work.</p> <p dir="ltr"><strong>Climate change efforts</strong></p> <p dir="ltr">The government has pledged over $30 billion in climate-related spending.</p> <p dir="ltr">Some $20 billion will be allocated to rewire the nation for renewable energy takes the lion's share, along with $630 million for a new disaster ready fund.</p> <p dir="ltr">Some $1.9 billion for a Powering the Regions fund, $275 million for driving the use of electric cars, and $224 million for community batteries to support household solar are also on the climate books.</p> <p dir="ltr"><strong>Women</strong></p> <p dir="ltr">A record $1.7 billion will be spent over six years to end violence against women and children and an initial $3.4 million will be set aside to introduce a program offering 10 days of paid domestic and family violence leave.</p> <p dir="ltr">Education for consent and respectful relationships will receive $83.5 million over six years, with $42.5 million set aside for sexual harassment at work, to implement recommendations of the Respect@Work report.</p> <p dir="ltr"><strong>Losers</strong></p> <p dir="ltr"><strong>Low and middle income earners</strong></p> <p dir="ltr">The government has chosen not to extend the popular Lower and Middle Income Tax Offset (LMITO) for the 2022-23 financial year.</p> <p dir="ltr">Known as 'the Lamington' scheme, the offset saved Aussies up to $1500 in tax in the last financial year - meaning taxpayers will feel the pinch once they have lodged their annual taxes.</p> <p dir="ltr"><strong>Motorists</strong></p> <p dir="ltr">Despite public outcry, the government discontinued the 22c cut to the fuel excise implemented by the Morrison Government that cost $3 billion over six months.</p> <p dir="ltr">The cost of petrol remains above $2 a litre and shows no signs of falling.</p> <p dir="ltr"><strong>Renters</strong></p> <p dir="ltr">Landlords have already started raising rental prices to accommodate for the price of inflation and the surge of mortgage repayments.</p> <p dir="ltr">Treasury forecasts rental costs will spike over the next couple of years, Budget documents said.</p> <p dir="ltr">Getting a rental is already extremely difficult in most capital cities and there was nothing in the Budget to specifically address the concerns of tenants.</p> <p dir="ltr"><strong>Young Australians</strong></p> <p dir="ltr">Australia's debt levels are expected to surpass the $1 trillion mark for the first time ever and someone is going to have to pay for it.</p> <p dir="ltr">Gross government debt is expected to reach $1.004 billion in 2023-24, making up 40.8 per cent of gross domestic product or economic output.</p> <p dir="ltr">This was expected to rise to $1.091 trillion in 2024-25, comprising 42.5 percent of GDP, and $1.159 billion by 2025-26 comprising 43.1 percent of the economy, which will inevitably fall to the next generation to solve.</p> <p dir="ltr"><em>Image credits: Getty Images</em></p>

Money & Banking

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Shehan Karunatilaka wins Booker prize for Sri Lankan political satire, The Seven Moons of Maali Almeida

<p>Sri Lankan novelist Shehan Karunatilaka has won the 2022 Booker Prize for his second novel, The Seven Moons of Maali Almeida.</p> <p>The win couldn’t come at a better time for Sri Lanka, a country once more engaged in <a href="https://foreignpolicy.com/2022/10/06/sri-lanka-economic-crisis-protests-imf/" target="_blank" rel="noopener">political and economic instability</a>, as it suffers through one of the world’s worst economic crises, with soaring inflation, food and fuel shortages, and low supplies of foreign reserves. And of course, the government was overthrown in July, after President Gotabaya Rajapaksa fled following mass protests.</p> <p>Karunatilaka said in his acceptance speech:</p> <blockquote> <p>My hope for Seven Moons is this; that in the not-too-distant future, 10 years, as long as it takes, Sri Lanka […] has understood that these ideas of corruption and race-baiting and cronyism have not worked and will never work.</p> </blockquote> <h2>Political black comedy</h2> <p>Karunatilaka’s novel is extraordinary – and hard to pin down. It is at once a black comedy about the afterlife, a murder mystery whodunit, and a political satire set against the violent backdrop of the late-1980s Sri Lankan civil war. It is also a story of love and redemption.</p> <p>Malinda “Maali” Kabalana, a closeted war photographer, wakes up dead in what seems to be a celestial waiting room. The setting will be familiar to many who’ve spent time in Colombo (as I have – it’s where my husband’s family is from). We open in a busy, bureaucratic office, filled with confusion, noise, a propensity against queuing – and a healthy dose of “gallows” humour. In other words, Maali is in some sort of purgatory.</p> <p>Maali soon discovers he has seven days – seven moons – to solve his own murder. This isn’t easy – he is interrupted by sardonic ghosts (often with grudges, questionable motives, and a tendency towards extreme chattiness), the violent reality of war-torn Colombo, and piecing together his memories of who he was.</p> <p>He also has seven moons to lead his official girlfriend and his secret boyfriend to a cache of photographs, taken over time, which document the horror of the war – and incriminate local and foreign governments.</p> <p>Karunatilaka’s subject matter and plot highlight, question and explore Sri Lanka’s legacy – and its continued, difficult relationship with its civil war, which spanned 1983 to 2009, though the reverberations continue. And his novel’s provocative, intimate, second-person style implicates us – the readers.</p> <p>Karunatilaka has mastered his craft as a novelist. He never once wavers from a second-person perspective that might be unwieldy (perhaps even gimmicky) in a lesser writer’s hands. The novel tells us, “Don’t try and look for the good guys, ‘cause there ain’t none”.</p> <p>It realises a combined responsibility for the tragedy of that 25-year civil war, in which the country’s colonial history is also implicated. British colonialists brought Tamil workers from South India to Sri Lanka, to work as indentured labourers on their coffee, tea and rubber plantations. Their descendants’ fight for an independent Tamil state was a strong component of the civil war.</p> <h2>Diffusing violence with humour</h2> <p>As a novelist and lover of second-person narration and a long-time follower of Karuntailaka’s accomplished work, I couldn’t be more delighted by this Booker win.</p> <p>I first came across Karunatilaka through his debut novel, <a href="https://www.penguin.com.au/books/chinaman-9780099555681" target="_blank" rel="noopener">Chinaman</a>, which was handed to me by my sister-in-law several years ago on a family visit to Colombo. That book taught me about cricket, but it also taught me the sardonic brilliance of Sri Lankan humour.</p> <p>Karunatilaka once again uses humour to great effect in The Seven Moons of Maali Almeida – to diffuse confronting moments of violence, to engage his reader, and for pure enjoyment. This novel follows a murder victim through a bloody civil war – and it’s laugh-out-loud funny.</p> <p>It’s also a tighter, more focused book than Chinaman: here is an author in control of his craft and what he wants to say with it. The Booker judges, too, praised the “scope and the skill, the daring, the audacity and hilarity” of the book.</p> <p>Karunatilaka’s winning novel took time to write. Ten years have passed since Chinaman. His skilful use of craft to tell this complicated story is testament to the idea that good books take the time they need: something that all authors know but publishers are not always willing to accept. However, Karunatilaka has been busy in that ten years, not just writing literary fiction, but writing for children – and having a family. The 47-year-old is now married with two kids.</p> <p>Karunatilaka is only the second Sri Lankan novelist to have won the Booker Prize. (The first was Michael Ondaatje in 1992 for The English Patient.) But last year, his countryman Anuk Arudpragasam was also <a href="https://thebookerprizes.com/the-booker-library/authors/anuk-arudpragasam" target="_blank" rel="noopener">shortlisted</a>, for <a href="https://www.allenandunwin.com/browse/book/Anuk-Arudpragasam-Passage-North-9781783786961" target="_blank" rel="noopener">A Passage North</a>, another accomplished novel set in the aftermath of the civil war.</p> <p>I’m excited by what this means for Sri Lankan authors and the Sri Lankan publishing scene. Here is a country with stories to tell and enormous skill to tell them with: let’s hope this leads to more Sri Lankan novels achieving wide readership, success and deserved acclaim.</p> <p><strong>This article originally appeared on <a href="https://theconversation.com/shehan-karunatilaka-wins-booker-prize-for-sri-lankan-political-satire-the-seven-moons-of-maali-almeida-192722" target="_blank" rel="noopener">The Conversation</a>.</strong></p> <p><em>Image: thebookerprizes.com</em></p>

Books

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Nobel economics prize: insights into financial contagion changed how central banks react during a crisis

<p><em>This year’s <a href="https://www.nobelprize.org/prizes/economic-sciences/2022/prize-announcement/" target="_blank" rel="noopener">Nobel prize in economics</a>, known as the Sveriges Riksbank Prize in Economic Sciences, has gone to Douglas Diamond, Philip Dybvig and former Federal Reserve Chair Ben Bernanke for their work on banks and how they relate to financial crises.</em></p> <p><em>To explain the work and why it matters, we talked to Elena Carletti, a Professor of Finance at Bocconi University in Milan.</em></p> <p><strong>Why have Diamond, Bernanke and Dybvig been awarded the prize?</strong></p> <p>The works by <a href="https://www.nobelprize.org/uploads/2022/10/popular-economicsciencesprize2022.pdf" target="_blank" rel="noopener">Diamond and Dybvig</a> essentially explained why banks exist and the role they play in the economy by channelling savings from individuals into productive investments. Essentially, banks play two roles. On the one hand, they monitor borrowers within the economy. On the other, they provide liquidity to individuals, who don’t know what they will need to buy in future, and this can make them averse to depositing money in case it’s not available when they need it. Banks smooth out this aversion by providing us with the assurance that we will be able to take out our money when it’s required.</p> <p>The problem is that by providing this assurance, banks are also vulnerable to crises even at times when their finances are healthy. This occurs when individual depositors worry that many other depositors are removing their money from the bank. This then gives them an incentive to remove money themselves, which can lead to a panic that causes a bank run.</p> <p>Ben Bernanke fed into this by looking at bank behaviour during the great depression of the 1930s, and showed that bank runs during the depression was the decisive factor in making the crisis longer and deeper than it otherwise would have been.</p> <p><strong>The observations behind the Nobel win seem fairly straightforward compared to previous years. Why are they so important?</strong></p> <p>It’s the idea that banks that are otherwise financially sound can nevertheless be vulnerable because of panicking depositors. Or, in cases such as during the global financial crisis of 2007-09, it can be a combination of the two, where there is a problem with a bank’s fundamentals but it is exacerbated by panic.</p> <p>Having recognised the intrinsic vulnerability of healthy banks, it was then possible to start thinking about policies to alleviate that risk, such as depositor insurance and reassuring everyone that the central bank will step in as the lender of last resort.</p> <p>In a bank run caused by liquidity (panic) rather than insolvency, an announcement from the government or central bank is likely to be enough to solve the problem on its own – often without the need for any deposit insurance even being paid out. On the other hand, in a banking crisis caused by insolvency, that’s when you need to pump in money to rescue the institution.</p> <p><strong>What was the consensus about bank runs before Diamond and Dybvig began publishing their work?</strong></p> <p>There had been a lot of bank runs in the past and it was understood that financial crises were linked to them – particularly before the US Federal Reserve was founded in 1913. It was understood that bank runs made financial crises longer by exacerbating them. But the mechanism causing the bank runs wasn’t well understood.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=405&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=405&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=405&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=509&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=509&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/489027/original/file-20221010-11-on0vn4.jpeg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=509&amp;fit=crop&amp;dpr=3 2262w" alt="Police controlling an angry crowd during a Paris bank in 1904" /></a><figcaption><span class="caption">A bank run in Paris in 1904.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-illustration/paris-police-hold-back-crowd-making-242294071" target="_blank" rel="noopener">Everett Collection</a></span></figcaption></figure> <p><strong>How easy is it to tell what kind of bank run you are dealing with?</strong></p> <p>It’s not always easy. For example, in 2008 in Ireland it was thought to be a classic example of bank runs caused by liquidity fears. The state stepped up to give a blanket guarantee to creditors, but it then became apparent that the banks were really insolvent and the government had to inject enormous amounts of money into them, which led to a sovereign debt crisis.</p> <p>Speaking of sovereign debt crises, the work by Diamond and Dybvig also underpins the literature on financial contagion, which is based on a <a href="https://www.jstor.org/stable/10.1086/262109" target="_blank" rel="noopener">2000 paper</a> by Franklin Allen and Douglas Gale. I worked with Allen and Gale for many years, and all our papers have been based on the work of Diamond, and Diamond and Dybvig.</p> <p>In a similar way to how state reassurances can defuse a bank run caused by liquidity problems, we saw how the then European Central Bank President Mario Draghi was able to defuse the run on government bonds in the eurozone crisis in 2011 by saying that the bank would do “<a href="https://qz.com/1038954/whatever-it-takes-five-years-ago-today-mario-draghi-saved-the-euro-with-a-momentous-speech/" target="_blank" rel="noopener">whatever it takes</a>” to preserve the euro.</p> <figure><iframe src="https://www.youtube.com/embed/tB2CM2ngpQg?wmode=transparent&amp;start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe></figure> <p><strong>The prize announcement has attracted plenty of people on social media saying we shouldn’t be celebrating Bernanke when he was so involved in the quantitative easing (QE) that has helped to cause today’s global financial problems – what’s your view?</strong></p> <p>I would say that without QE our problems would today be much worse, but also that the prize recognises his achievements as an academic and not as chair of the Fed. Also, Bernanke was only one of the numerous central bankers who resorted to QE after 2008.</p> <p>And it is not only the central bank actions that make banks stable. It’s also worth pointing out that the changes to the rules around the amount of capital that banks have to hold after 2008 have made the financial system much better protected against bank runs than it was beforehand.</p> <p><strong>Should such rules have been introduced when the academics first explained the risks around bank runs and contagion?</strong></p> <p>The literature had certainly hinted at these risks, but regulation-wise, we had to wait until after the global financial crisis to see <a href="https://www.ecb.europa.eu/pub/pdf/fsr/art/ecb.fsrart201405_03.en.pdf" target="_blank" rel="noopener">reforms such as</a> macro-prudential regulation and more stringent micro-prudential regulation. This shows that regulators were underestimating the risk of financial crises, perhaps also pushed by the banking lobbies that had been traditionally very powerful and managed to convince regulators that risks were well managed.</p> <p><strong>If retail banks become less important in future because of blockchain technology or central bank digital currencies, do you think the threat of financial panic will reduce?</strong></p> <p>If we are heading for a situation where depositors put their money into central banks rather than retail banks, that would diminish the role of retail banking, but I think we are far from that. Central bank digital currencies can be designed in such a way that retail banks are still necessary. But either way, the insights from Diamond and Dybvig about liquidity panics are still relevant because they apply to any context where coordination failures among investors are important, such as sovereign debt crises, currency attacks and so on.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/192208/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><span id="docs-internal-guid-b64a001e-7fff-6de9-427e-bf63c137d340">Written by Elena Carletti. Republished with permission of <a href="https://theconversation.com/nobel-economics-prize-insights-into-financial-contagion-changed-how-central-banks-react-during-a-crisis-192208" target="_blank" rel="noopener">The Conversation</a>. </span></em></p> <p><em>Image: The Nobel Foundation</em></p>

Money & Banking

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Qantas reports huge loss but even bigger revenue

<p dir="ltr">Qantas CEO Alan Joyce has announced a whopping $1.9 billion loss for the 2022 Financial Year.</p> <p dir="ltr">Following almost two years of next to no flights due to the Covid pandemic, Mr Joyce explained that flights are “all full” as they push to get them out of storage.</p> <p dir="ltr">He however revealed that despite air travel resuming, his company has faced a devastating loss but quite an impressive revenue.</p> <p dir="ltr">“The Group had an underlying loss before tax of almost $1.9 billion, and a statutory loss before tax of just under $1.2 billion,” Mr Joyce said. </p> <p dir="ltr">“That brings our total losses since the start of the pandemic to more than $7 billion and takes lost revenue to more than $25 billion.</p> <p dir="ltr">“To put that in perspective, on a statutory basis, COVID cost us more money in the past three years than we made in the five years before that.</p> <p dir="ltr">“The fact we’ve been able to steer through this is remarkable. And now that we are through it, things are improving even faster than we expected.”</p> <p dir="ltr">Mr Joyce then noted the frustration felt by flyers due to delayed and cancelled flights, lost luggage, and labour shortage.</p> <p dir="ltr">He said that they are working toward improving customers’ experience as leisure flying soared to 125 per cent of pre-Covid levels and business travel to 90 per cent. </p> <p dir="ltr">“As many of you have probably experienced, strong travel demand has also brought some difficulties,” he continued. </p> <p dir="ltr">“We knew the recovery was coming and we were ready for the restart. What we weren’t ready for – after 18 months of COVID being suppressed – was such high levels of community transmission and the sick leave that followed.</p> <p dir="ltr">“The rebound in travel demand also coincided with a massive labour shortage. Of course, that shortage has been more acute in aviation because of how many people left the industry during two very uncertain years.</p> <p dir="ltr">“All of this resulted in well-publicised problems: long queues, delayed flights and misplaced bags.</p> <p dir="ltr">“It was incredibly tough for our people and deeply frustrating for our passengers. It simply wasn’t good enough, and for that, we have apologised.”</p> <p dir="ltr">Mr Joyce revealed that the company has hired more than 1,500 staff since April, with more new recruits to come in the next few months.</p> <p dir="ltr">“We’re reducing our domestic flying – in part – to give us more buffer. We are rostering more crew across fewer flights, which means we can better cover sick leave that is averaging almost 50 per cent above normal,” he continued.</p> <p dir="ltr">“We’re also investing more in technology, including an upgrade to our airport kiosks and bag drop facilities, as well as new scanners at boarding gates.”</p> <p dir="ltr"><em>Image: Getty</em></p>

Travel Trouble

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Samuel Johnson portrait win Archibald Prize People’s Choice

<p dir="ltr">An emotional portrait of Samuel Johnson OAM has won the Archibald Prize 2022 ANZ People’s Choice award. </p> <p dir="ltr">The portrait, painted by Jeremy Eden, shows a solemn looking Johnson holding a black and white photograph of his sister Connie. </p> <p dir="ltr">“It’s an honour to have my painting chosen for this year’s ANZ People’s Choice award,” Jeremy said. </p> <p dir="ltr">“This painting has been one I have been thinking about and wanting to make for 10 years. Sam is a storyteller at heart, and it was really important to find a way to share my own narrative while still capturing Sam’s character and emotion in the portrait.”</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-permalink="https://www.instagram.com/p/Cgx4yY8MRz_/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/Cgx4yY8MRz_/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by Art Gallery NSW (@artgalleryofnsw)</a></p> </div> </blockquote> <p dir="ltr">“It is inspiring to see what Sam and the team at Love Your Sister have accomplished, having raised so much money for cancer research.”</p> <p dir="ltr">“I’ve followed Sam’s journey with the charity for many years and it’s a privilege to be able to contribute in my own way. It is amazing to be a finalist in the Archibald Prize but knowing the painting has resonated with so many people makes the experience even more meaningful.”</p> <p dir="ltr">Jeremy is also selling prints of his award-winning artwork, with 50% of the proceeds going to Sam’s charity ‘Love Your Sister’.</p> <p dir="ltr"><em>Image credits: Instagram </em></p>

Art

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Inflation is 2022’s boogeyman. How can we address rising living costs, while helping bring it down?

<p>An entire generation has never experienced life with high inflation. But that is set to change. Countries like Australia, Canada, the United Kingdom and others are <a href="https://www.weforum.org/agenda/2022/06/inflation-stats-usa-and-world/">reporting rising inflation</a>. In New Zealand, inflation has climbed to its <a href="https://www.stuff.co.nz/business/129293267/annual-inflation-hits-73">highest rate in 32 years</a>. Our collective inexperience with the scourge of inflation, and how to solve it, could be a real problem.</p> <p>For those experiencing high inflation for the first time, it is helpful to understand just what economists and politicians are talking about.</p> <p>Inflation is a sustained increase in overall prices. Not everything goes up by the same amount but when people are having to pay more each week, month or year for the same basket of goods and services then that’s inflation.</p> <p>Inflation is harmful in many ways. It works like rust – slowly eating away at the value of your money. Inflation affects all of us. It doesn’t matter what the face value of your money is – what matters is the quantity of goods and services you can buy with it.</p> <p><strong>The real value of money</strong></p> <p>One easy way to understand inflation is to look at what you can buy for the money you have.</p> <p>Suppose at the start of the year your $100 note bought you 20 cups of coffee. However, inflation pushes coffee from $5 to $6 a cup. By the end of the year, your same $100 only buys you 16 cups of coffee. The face value of your money is the same but its real value (in terms of the number of coffees you can buy) has gone down. Your money is worth less now than a year ago.</p> <p>This rise in costs hurts wage earners who have limited opportunity to renegotiate their wages.</p> <p>Inflation also hurts those on fixed incomes such as beneficiaries and superannuitants who only receive periodic adjustments.</p> <p>Rising inflation hurts savers who find the real value of their savings going down if returns on savings don’t keep up with inflation – which they currently aren’t.</p> <p>Inflation can benefit borrowers who have the same debt at the end of the year but the value of that debt is lower in real terms. Providing there is at least some inflation adjustment to their income, borrowers have to sacrifice less to repay their debt.</p> <p>While this sounds good, it’s not. It encourages poor borrowing decisions and discourages savings.</p> <figure class="align-center "><img src="https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/474465/original/file-20220718-495-2r9amx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="Young woman looking at a grocery receipt." /><figcaption><span class="caption">Inflation has risen to levels not seen for three decades. Consumers will feel the squeeze as their purchasing power drops.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/photo/checking-receipt-royalty-free-image/691853536?adppopup=true">Getty Images</a></span></figcaption></figure> <p><strong>The all-encompassing impact of inflation</strong></p> <p>In a progressive tax system, inflation hurts salary and wage earners who get pushed into higher tax brackets as they receive inflation adjustments to their pay.</p> <p>Inflation can also cause issues at a national level.</p> <p>If one country’s inflation rate is higher than their trading partners then its currency falls in value. In the early 1970s, the NZ dollar was worth almost US$1.50. Our higher inflation rates of the 70s and 80s saw it fall to around US$0.50 by the mid 80s.</p> <p>This drop in value limits what we can buy from overseas – things like life-saving drugs will become more expensive for us if we don’t get inflation down and others do.</p> <p><strong>The causes of inflation can come from good intentions</strong></p> <p>Inflation is too much money chasing too few goods.</p> <p>If central banks push more money into circulation, there is a real risk of inflation. A big increase in demand for goods from, for example, an increase in government spending can also trigger inflation. So can supply chain disruptions that reduce the goods available (meaning the same amount of money chasing fewer goods).</p> <p>Unfortunately, all these triggers are currently in play as countries respond to a series of global crises.</p> <p>The invasion of Ukraine and ongoing COVID-19 supply chain disruptions have reduced the goods available. Governments globally have boosted spending to support their economies. But this latter factor has been put on steroids by central banks being willing to purchase government debt.</p> <figure class="align-center "><img src="https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/474468/original/file-20220718-53534-kfbvw2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" alt="Man with mask pushing supermarket trolly." /><figcaption><span class="caption">Russia’s war in Ukraine and the ongoing COVID-19 pandemic has caused a cost-of-living crisis.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com.au/detail/photo/man-wearing-mask-while-shopping-in-supermarket-royalty-free-image/1235145649?adppopup=true">Getty Images</a></span></figcaption></figure> <p><strong>Unintended consequences</strong></p> <p>The RBNZ bought billions of government bonds to keep interest rates low as part of its <a href="https://www.parliament.nz/en/pb/library-research-papers/research-papers/library-research-brief-large-scale-asset-purchase-lsap-programme">“large scale asset purchases” programme</a>.</p> <p>In New Zealand, the average money growth between 1995 and 2019 was about 8% per year. This accommodates a growing population, a growing economy and a little bit of inflation (a little bit is OK). In the last two years money supply has grown by around 30% per year.</p> <p>Of course it’s easy to look back with the benefit of hindsight. Those who made the decisions at the time don’t have that luxury.</p> <p>The RBNZ is now they are having to wind back their asset purchases and raise interest rates to rein in inflation.</p> <p>Some argue the RBNZ has been <a href="https://www.stuff.co.nz/national/politics/129311096/more-pain-expected-as-inflation-runs-hotter-than-a-government-can-handle">distracted and has dropped the ball on their key job</a> and we are now facing the risk the inflation genie is out of the bottle.</p> <p>Whether that criticism is justified or not, the RBNZ will now have to act decisively to reduce inflation. But getting inflation down is never painless.</p> <p>Households with mortgages will find their weekly budgets squeezed as interest rates rise. Firms will face falling demand from consumers with less to spend. Job growth will dry up – though New Zealand is in the fortunate position of starting with very low unemployment.</p> <p>Regardless, the RBNZ must do the job they got back in 1989 with the passing of the <a href="https://www.rbnz.govt.nz/-/media/29ada25bfa8b4e50922262618fb03e00.ashx?sc_lang=en">Reserve Bank of New Zealand Act</a>. New Zealand’s central bank is the only one that can control monetary conditions; it’s the only one that can get inflation under control.</p> <p>The same could be said for many of the countries facing growing inflation.</p> <p>If central banks don’t take decisive action, we could get a sharp reminder of just how bad inflation can be.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/187154/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/stephen-hickson-1288490">Stephen Hickson</a>, Economics Lecturer and Director Business Taught Masters Programme, <a href="https://theconversation.com/institutions/university-of-canterbury-1004">University of Canterbury</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/inflation-is-2022s-boogeyman-how-can-we-address-rising-living-costs-while-helping-bring-it-down-187154">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

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