David Murray Wrong on Sovereign Wealth Funds
Outgoing Future Fund Chairman David Murray wrote a defence of sovereign wealth funds for The Weekend Australian. I respond to Murray in today’s Business Spectator.
A curious feature of this debate is the way in which the defenders of sovereign wealth funds have raised the possibility of secular stagnation in defending inter-generational wealth transfers via a SWF (Malcolm Turnbull also suggested this in a tweet). As I note in my Business Spectator piece, a SWF could at best smooth the implications of secular stagnation over time. If secular stagnation really is upon us, then it is even less likely the Future Fund will realise its targeted real rate of return of 5%.
posted on 23 March 2012 by skirchner in Economics, Financial Markets, Fiscal Policy
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