Our mission: Find the world’s best economic ideas (Summer School World Tour)
Summary
Planet Money’s Summer School World Tour begins in Australia and New Zealand with economist Justin Wolfers. The episode explores Australia’s water markets, highlighting how trading rights improves efficiency but raises concerns about speculation. It then examines New Zealand’s invention of inflation targeting, explaining how central bank credibility and transparency help anchor expectations and control prices.
Topics discussed
Planet Money Summer School intro and season overview
Guest intro: Justin Wolfers and the big economic question
Australia's water markets: efficiency and economic benefits
Controversy: Water speculation and farmer backlash
Economics of markets: Tragedy of the commons and speculators
Transition to New Zealand: Inflation targeting origins
Arthur Grimes and the invention of inflation targeting
Don Brash's tough policies to crush inflation
Multiple equilibria: How expectations shape inflation
Key takeaways: Credibility, transparency, and democracy
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