Running on empty

After nine years spent in opposition, it's still hard to know what Federal Labor intends by way of an economic policy platform. Kim Beazley still seems to believe that the prime purpose of opposition is to oppose. John Quiggin disagrees. Without a coherent and well-understood economic direction, he argues, Labor's sniping will continue to look like unfocussed opportunism.

The oil shock of 2005

During the course of 2005, the price of crude oil reached unprecedented high levels, at least in nominal terms. Australian motorists have become used to paying more than a dollar a litre for petrol. Given the past volatility in oil prices, often described in terms of a series of oil ‘shocks’ (the large price increases in 1973, 1979 and 1999), several questions arise. First, will current high prices persist, or will prices decline substantially as occurred after previous oil shocks? Second, is the current shortage of oil a temporary phenomenon, caused by inadequate investment in oil exploration, drilling and refining capacity, or is it a signal that the supply of oil available to the world has peaked? Third, will high oil prices lead to broader economic disruption, as is commonly supposed to have happened after previous shocks? Fourth, how painful will an adjustment to lower use of oil be? Finally, how does all this relate to our efforts to deal with the problem of climate change? This article is an effort to answer some of these questions in the light of the knowledge available to us.

Blogs, wikis and creative innovations

In this article, recent developments in the creation of web content, such as blogs and wikis, are surveyed with a focus on their role in technological and social innovation. The innovations associated with blogs and wikis are important in themselves, and the process of creative collaboration they represent is becoming central to technological progress in general. The internet and the world wide web, which have driven much of the economic growth of the past decade, were produced in this way. Standard assumptions about the competitive nature of innovation are undersupported in the new environment. If governments want to encourage the maximum amount of innovation in social production, they need to de-emphasize competition and emphasize creativity and cooperation.