A message to the Reserve Bank of Australia following the release yesterday of the official inflation rate by the Australian Bureau of Statistics.
In the absence of firm indications, declarations of intent or probabilities, commerce, society and individuals find it hard, if not impossible, to make informed decisions.
THE CONSEQUENCES
The overriding arresting consequences are a check on activities, a slowing or cessation of momentum and putting on hold what should be done now.
A sense of apprehension promotes anxiety about the future.
The prevailing economy can be arguably described as a hotbed of mixed emotions:
· Hope founded on anticipation is tempered because any feeling of
excitement is suppressed.
· Belief centred on supposition that something specific will happen, is
seemingly suspended.
· Estimation established on projections or estimates of future outcomes, is
held in abeyance.
Little wonder many Australians feel that they are exposed, with no natural protection, and are vulnerable – that is, susceptible to hurt and pain.
THE NEED
Economics, the dark art, can be and often is dispatched in a dispassionate manner. Little consideration or understanding is evident about the emotions, perceptions and attitudes of the people most affected.
The primary focus is on the means – statistics, fiscal and monetary policies and rational thinking.
Most needed now is behavioural economics, deployed by studied, experienced and sensitive practitioners.
That alone will stimulate interest in the subject matter.
Barry Urquhart
Business Analyst
Marketing Focus
M: 041 983 5555
E: urquhart@marketingfocus.net.au