The Journal of Australian Political Economy regularly publishes articles on contentious issues of public concern. Because real-world challenges are continuously evolving, timely analyses of the underlying political economic forces are recurrently needed. This latest issue of JAPE focuses on key public policy issues, both globally and nationally.
The nature and effects of US trade policies are the focus of the first article. As we know, the dramatic tariff hikes implemented by the Trump administration during 2025 have had jarring effects throughout the global economy. But is there method in the madness? Patricia Ranald’s article looks at how international trade policy theory and practice has evolved over recent decades, leading up to the Trumpian disruptions. It associates Trump’s policies with a mercantilist approach to political economy as well as a shift from democracy to authoritarianism. Looking at the causes as well as the consequences of these recent policy changes, it posits ‘brutal coherence behind the chaos’.
The changing relationship between productivity and wages – what has come to be known as ‘wage decoupling’ – is the topic of the next article. This is timely too because, in Australia, the Productivity Commission has sought to explain labour’s falling share in the national income as a side-effect of the growth of the export-oriented mining sector. Seen in this way, wage decoupling may not itself warrant remedial policy responses. Thomas Greenwell’s article directly challenges this view. Using empirical analysis of data on productivity, wages and industry structure, it shows that labour’s weakened bargaining power is a key variable that should not be downplayed, as it is in the PC’s interpretation. Important implications for economic policy and union strategy follow from this more realistic interpretation.
The factors shaping monetary policy warrant similarly careful consideration. Like wages policy, monetary policy has a big bearing on living standards, impacting particularly on people using mortgage finance to buy housing and, more generally, on levels of employment and unemployment. Looking at what the Reserve Bank of Australia has done, Martijn Konings and his four co-authors argue that central banking cannot reasonably be expected to ‘return to normal’ following the disruptions of the COVID era and the subsequent inflationary surge. Their article focuses particularly on the effect of property market considerations and shows how the distributional and political implications of this increasingly important ‘asset economy’ bear heavily on the RBA’s monetary policy decisions.
Turning attention to environmental and energy policy challenges, the fourth article in the new issue of JAPE looks at the ‘rocky road to net zero’. Presenting a case study of the state of Victoria, Jim Crosthwhaite, Elke Pirgmaier and Kate Bayliss analyse the key institutions and interests that obstruct the aim of becoming gas-free. They apply a ‘systems of provision’ approach to show how the processes and patterns of consumption and production generate conflict and contestation, impeding progress towards sustainability. Rich in empirical detail, this article should be of enduring relevance for activists as well as academics interested in seeing how this distinctive analytical framework can structure systematic research.
The use of a distinctive analytical framework is also evident in the next article, looking at the ongoing cost of living stresses in Australia. Rather than the conventional macroeconomic approach to studying inflation, Timothy Kerswell makes a powerful case for preferring the ‘monopoly capitalism’ framework developed seven decades ago by Paul Baran and Paul Sweezy. His article identifies how monopoly interests in key sectors of the Australian economy have pushed prices up beyond what might be explicable by more conventional macroeconomic analysis. The concentration of capital ownership in specific economic sectors is a crucial aspect that needs to be considered, with important strategic and policy implications.
A cluster of contributions on the crisis in Australian universities comes next in the new JAPE. Greg McCarthy looks at the challenges arising for universities during the current era, showing the financial stresses that government policy changes have caused and the business models that the universities have adopted. The article shows the inequalities between different types of universities and how the outcomes of proposals for university mergers have interacted with regional economic conditions. It is followed by Raewyn Connell’s written version of her 2025 Wheelwright lecture – provocatively titled ‘should universities be abolished?’. Connell considers the implications of how universities have changed and raises the question of what could be done rescue their capacity to pursue sound educational goals. Bryan Turner’s book on a similar topic is then reviewed by Joel Griggs.
Finally, the new issue of JAPE features two substantial review articles. Hans Baer considers seven recent books on climate change in Australia, Oceania and the world, summarising and discussing their distinctive themes and contributions. David Primrose takes a different approach to his topic of health inequalities in contemporary capitalism, looking in-depth at just one new book on this important topic and assessing what needs to be more fully developed in future analyses.
Overall, this issue of the JAPE reflects the vitality of current Australian political economic research and writing on contemporary global and local topics.
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Image credit: White House
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