In an interview with the Financial Times (FT) on Wednesday, Australian treasurer Josh Frydenberg has addressed a number of topics, including the implications of the global stimulus, employment, monetary policy and Australia-China relations.
“Unprecedented global stimulus efforts during the coronavirus pandemic are creating risks to financial stability that will intensify when interest rates inevitably rise“.
“There is no doubt that high levels of debt will create challenges for many countries. While global interest rates are low, those debt levels can be helpful, but there will be a time when the monetary policy setup will change. “
When asked if he thought Thatcher’s and Reagan’s economic policies were still relevant, he said: “[Reagan y Thatcher] They accomplished a lot when they were in office and were committed to lowering taxes. They were committed to cutting regulation and that is certainly what I have committed to as well.“.
When asked about the imposition of trade sanctions by Beijing on a variety of Australian exports, he said: “obviously we’ve had some challenges with China“.
“Australian ministers were willing to sit down with their Chinese counterparts to discuss the bilateral relationship, but only” without conditions. ” It’s a mutually beneficial business relationship – we supply most of their iron ore, and that iron ore has helped underpin their economic growth.”He added.