MBS Media coverage

Inflation targets make sense

Mark Crosby, The Age, pg 14, 25 February 2009
The US Federal Reserve last week took strong steps towards adopting a formal target for the inflation rate of between 1.5 and 2 percent. It follows many other major central banks, including the Bank of England, the European Central Bank, the Reserve Bank of Australia and the Reserve Bank of New Zealand in adopting inflation targets. This is a sensible strategy and supports economic recovery in the US.

Let people choose: Scrap compulsory super and subsidies

Paul Kerin, The Australian, pg 25, 24 February 2009
The Hawke/Keating government's super paternalism never sat well with its many great reforms that gave citizens more choice, says Paul Kerin, MBS Professorial Fellow. He claims Rudd's neo-paternalism is constraining choice further, and advises that we should abolish super compulsion and subsidies and let citizens make their own saving and investment decisions: then stand ready to directly assist retirees without adequate nest eggs. Read the full article.

Business Class

Silk Road, pg 49, 20 February 2009
An MBA can be an investment in your future especially in time of financial uncertainty. This article profiles MBS alumnus Denny Ho who used his MBA to ‘leap from his small business past to a big corporate future’.

No Quick Fix

Leo D'Angelo Fisher, BRW, pg 51, 20 February 2009
Most companies are downsizing in a bid to sustain earnings in a starker economy, but Critical Management Group’s Marc Stigter warns there are inherent risks: ‘Companies risk terminating employees who are key to informal networks.’ Stigter, who is also with Mt Eliza Executive Education in Melbourne, adds that surviving employees feel vulnerable and less creative after job cuts - ‘not an ideal situation for companies trying to endure a recession.’

Emotive opposition arguments make no financial sense

Joshua Gans, The Age, pg 10, 19 February 2009
Propose a stimulus package and the standard political response from any opposition is that it will generate a debt that our children will be forced to repay. It's a nice emtional argument, but it doesn't make political sense, according to MBS Professor Joshua Gans. He says that the Whitlam and Fraser debts were paid back in the 1980s, and the Keating debt of the early 1990s, was paid back by the end of the 1990s. Arguing about debt burdens is meaningless. Instead he advises the Coalition and others should argue the pure cost-benefit for each and every element in the stimulus package. Read the full article.

Six degrees of separation

HR Monthly, pg 24, 19 February 2009
This article investigates the complex world of social network analysis (SNA). Phill Boas, director of design and learning methods at Mt Eliza executive education, a part of Melbourne Business School says that SNA comes into its own when there’s a problem with how decisions are made.

Dreaded D Word Is Heard More Often

Gareth Costa, West Australian, pg 64, 17 February 2009
The US-centred global financial crisis has been deepening for almost two years now, and the question remains, how will it affect Australia. Professor Mark Crosby from MBS was joint author of a paper in 2005, "When the US sneezes, do we need to catch a cold? Historical and future linkages between the US and Australian economies." The conclusion, helps to predict that in Australia the economy may begin to recover late this year.

Major port in Gaza will solve political problems

Annie Hastwell, Radio Adelaide (National Australia), The Wire, 13 February 2009
At the moment Peace in the middle east is a more distant prospect than ever. The violence in Gaza has been followed by an election result showing that Israelis have moved distinctly to the right. Not the time you would think for a bright business idea which would have Israel helping Palestinians get on their feet economically. But Professor Dan Peled is an optimist. He's just arrived in Australia from Haifa University in Israel and he's currently visiting fellow at the Melbourne Business School. He thinks that a lot of political problems in the Middle east could be solved if Israel built a major port in Gaza.

Profit from loss

Nelson Daniels, BRW, pg 51, 13 February 2009
Employers should take advantage of staff turnover, as well as minimising the damage, says Melbourne Business School associate professor, Ian Williamson. He says, traditionally, companies have employed a defensive and retaliatory approach to staff turnover. Yet, there is a third approach, Williamson says: a relational approach. He cites Microsoft, KPMG, BearingPoint and Accenture as examples of companies adopting and being successful with a relational approach. These companies benefit from a mutual goal of improving business. Williamson says: ‘Instead of the old war-for-talent mentality which frames turnover as a win-or-lose scenario, companies should adopt a more holistic perspective'.

New Foundations

Catherine Fox, Boss, pg 38, 13 February 2009
Managing in this unprecedented turbulence requires advice from some of the world's best thinkers. MBS dean John Seybolt says, "What business schools should be doing is helping our students ask the right questions and they don't come from any one discipline. That way they're more prepared to focus for chaos in their sectors."

What ceiling for jobless rate?

Mark Crosby, The Age, pg 8, 13 February 2009
The Government must do more for the unemployed writes associate professor at Melbourne Business School Mark Crosby. He says that with unemployment having risen from a low of 3.9 per cent a year ago to 4.8 per cent in January, the obvious question is how high will it go? By historial standards 4.8 per cent is still very low. But with the economy very weak and likely to stay that way this year, there is little doubt unemployment will continue to rise. Read the full article.

Rudd’s debt on the credit card reflects a poor savings record

The Daily Telegraph, pg 23, 09 February 2009
So when the politics is taken out of the argument, how concerned should we be with the prospect of the Prime Minister seeking to increase the Commonwealth Credit Card limit from its current $75 billion? Mot too much, experts say. If Parliament grants the limit Mr Rudd seeks he would only be able to push debt up to about 15 per cent of GDP. Even that level shouldn’t be a concern said MBS associate Professor Mark Crosby. A debt level of even 20 per cent was “very manageable “, Mr. Crosby said. It only took about 1 per cent of GDP to pay the interest (assuming you borrow at an interest rate of about 5 per cent).

Trainers see downturn’s upside

The Australian Financial Review, pg 28, 09 February 2009
Business may be slashing training budgets, but professional development experts expect a double whammy of demand and growth this year. Mt Eliza Executive Education is starting a short course for human resource managers on strategies for re-energising workforces. Rather than cutting professional development budgets completely, the most successful businesses would focus on spending their training dollars as effectively as possible, said Ian Williamson an associate professor of human resource management at Melbourne Business School.

Clash of the Titans

Sydney Morning Herald, pg 1, 07 February 2009
It’s economists at 20 paces as the leaders battle it out over the Government’s stimulus package. Melbourne Business School professor Joshua Gans says that the differences between Turnbull’s idea of bringing forward planned tax cuts and Rudd’s one-off cash bonuses are more apparent than real.

From sweet to sour

BRW, pg 40, 05 February 2009
China is not immune to the global financial crisis, and its economy is starting to slow. In this article, three potential scenarios, from best case to worse examine the risks and implications. MBS Associate Professor Mark Crosby says that China is not especially vulnerable to the decline in exports, which will probably only reduce growth by about 2 per cent.

Forget the ideology common sense should prevail

Joshua Gans, The Age, pg 10, 05 February 2009
The global financial crisis is an opportunity for reform, writes MBS professor Joshua Gans.

Six, or less, degrees of separation

HR Monthly, 04 February 2009
Phill Boas, director of design and learning methods at Melbourne Business School’s Mt Eliza Executive education arm, says Social Network Analysis (SNA) comes into its own when there’s a problem with how decisions are made. Take any of the recent corporate disasters from Enron down, he says. In such situations, SNA ‘would have rapidly identified the constructive and destructive in-groups and out-groups and shown people who were claiming to be one thing were clearly another’.

Rudd changes gear, but is the car moving?

Joshua Gans, The Age, pg 12, 04 February 2009
The Government’s moves are welcome, but it needs to work on credit policy, writes MBS Professor Joshua Gans.

Guarantee detail

4BC Brisbane , 03 February 2009
Melbourne Business School’s Joshua Gans discuss Kevin Rudd’s bank guarantees noting that the Opposition and journalists have not been pressing the Government for detail to understand what the guarantees are supporting.

Are we in a recession?

ABC TV 7.30 Report, 03 February 2009
Melbourne Business School’s Mark Crosby comments on interest rate cuts and says that the Australian economy may well already be in a recession. Read the full article.