The global credit boom: Challenges for macroeconomics and policy

The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it. In this paper, we provide an empirical and theoretical analysis of the credit boom and the macroeconomic context in which it developed. We find that the boom was unusually long and associated with neither particularly strong growth nor rising inflation in the economies in which it took place. We show that this type of credit and financial cycle is hard to reconcile with existing economic theory and argue that, while the “global savings glut” may account for the cycle's initial phase, other factors – such as the conduct of monetary policy and perceptions of declining macroeconomic risk – were more important from the mid-2000s onwards. We conclude by identifying some of the challenges now facing macroeconomics and policy.     

Creating positive habits in water conservation: the case of the Queensland Water Commission and the Target 140 campaign

This case study reports the activities of the Queensland Water Commission (QWC) in securing the water supply for Brisbane and surrounding South East Queensland (SEQ) in response to the worst drought on record. The case focuses on residential water use and examines a three year period from 2006 to 2009. The focus of the study is the interventions of 2007, which centres on the Target 140 campaign. In 2007, the QWC faced with critically low dam levels identified household consumption as responsible for 70% of water use. The eight month Target 140 campaign targeted household users, aiming to change the water use habits of SEQ residents. The campaign achieved not only immediate reductions in water use but also contributed to long term behavioural and attitudinal change. The aim of the campaign was to reduce water consumption from 180 litres (l) /person/day to a target of 140 l /person/day by the end of 2007. This was achieved with water consumption dropping to an average of 129 l/person/day during the campaign and saving over 20 billon litres of water. In 2009, despite the drought broken for over a year and the water consumption target lifted to 200 l /person/day residents were continuing to consume water, on average, less than 140 l /person/day. The outcome was a capstone result for the QWC, and the Target 140 campaign went on to achieve international industry recognition. This case study demonstrates how attitudinal change, goal setting and feedback were key components of the change strategy and outlines the tactics used during the campaign. Furthermore, the case study discusses these mechanisms for change in terms of a theoretical understanding. Copyright © 2011 John Wiley & Sons, Ltd.     

On Compliance with Ethical Standards in Tax Return Preparation

The Statements on Responsibilities in Tax Practice (SRTPs) provide guidance to the CPA when making decisions in tax practice. Many of these decisions are ethical in nature and have implications for tax compliance. In this study, a survey methodology is used to test whether the SRTPs affect decisions that CPAs make. The findings suggest that a clear majority of CPAs follow the SRTPs when making ethical decisions relating to tax return preparation and that CPAs follow the SRTPs more often than unlicensed preparers on half the issues tested. However, a statistically significant number of CPAs do not follow the SRTPs and, CPAs do not follow the SRTPs any more often than unlicensed tax preparers on three issues.     

The development of tourist art and souvenirs — the arc of the boomerang: from hunting,fighting and ceremony to tourist souvenir

This paper examines the history and development of tourist art and souvenirs and discusses the reception of such artefacts, alongside works of fine art, within the museogallery system. Beginning with the relationship between cultural tourism and anthropology, it identifies common links between ethnographic artefacts, works of fine art and souvenirs collected in Australia during the latter half of the 20th century. Approaching these objects from the discipline of art history, this research takes as its priority the formal qualities of the artefacts and charts the transition of the boomerang, among other Aboriginal artefacts, from functional tool designed for hunting, to a marker of people and place made for sale as a tourist commodity. Other questions addressed in this research are as follows: What, other than size and price, attracts tourists to certain souvenirs and not others? Where is their final resting place and what meaning is attached to them through the narrative appended by the maker and by the consumer? How is it effected by the resulting location of display? Copyright © 2008 John Wiley & Sons, Ltd.     

Sovereign rating changes—Do they provide new information for stock markets?

The purpose of this paper is to examine the impact of sovereign rating changes on international financial markets using a comprehensive database of 42 countries, covering the major regions in the world over the period 1995–2003. In general, we find that rating agencies provide stock and foreign exchange markets with new tradable information. Specifically, rating upgrades (downgrades) significantly increased (decreased) USD denominated stock market returns and decreased (increased) volatility. Whereas the mean response is contributed evenly by the local currency stock returns and exchange rate changes that make up the USD returns, only the foreign exchange volatility was behind the USD denominated return volatility. In addition, we find significant asymmetric effects of rating announcements. The market responses – both return and volatility – are more pronounced in the cases of downgrades, foreign currency debt, emerging market debt, and during crisis periods. This study has important policy implications for international investors’ asset allocation plans and for regulatory bodies such as the Basel Committee who increasingly rely upon Moody's, Standard and Poor's and Fitch's ratings for their regulatory regimes.     

Wunderkammer 02 : An Exhibition of Art,Craft and Souvenirs from World Heritage Sites in Tasmania and Far North Queensland

With its focus on the regions of Tasmania and Far North Queensland, this exhibition (30 August – 20 September 2002) examines the objects and artworks collected today in the tradition of the Wunderkammer. It brings together artists and craft people who, in some way, have engaged with the tourist aesthetic and economy of souvenirs. Central to this project is a study of the representation of place culture and heritage through the agency of tourist art and souvenirs.     

A new look at hedging with derivatives: Will firms reduce market risk exposure?

This study examines derivatives use of foreign exchange, interest rate, and commodities risk by nonfinancial firms across multiple industries, using data from 1995 to 2001. This work considers the interaction of a firm's risk exposures, derivatives use, and real operations simultaneously, and considers how these factors change over time using a consistent database. Hedging with derivatives is only signi.cantly related to commodity risk exposure during most years of the study, and to a more limited degree to interest rate exposure. Further, a strong correlation was found between risk exposures for some years using a new technique, suggesting that univariate modeling is not always appropriate. The implications are that hedging with derivatives is not always important to a firm's rate of return and is linked to other nonfinancial and economic factors. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27: 1053–1083, 2007     

Linking Culture and Ethics: A Comparison of Accountants’ Ethical Belief Systems in the Individualism/Collectivism and Power Distance Contexts

This study uses accounting professionals from an international setting to test the individualism and power distance cultural dimensions developed by Hofstede [Culture’s Consequences (Sage Publications, Beverly Hills, CA) 1980]. Six countries, which appropriately represented high and low values on the Hofstede dimensions, were chosen for the survey of ethical beliefs. Respondents (n = 249) from the six countries were requested to supply their agreement/disagreement with eight questionable behaviors associated with the work environment. Each of these behaviors contained an individualism and/or power distance cultural component for the responding accountants to consider. The results of the cultural analysis indicated significance on five of the eight survey items. Results lend support for the presence of the individualism cultural element in the ethical responses of the accountants surveyed.     

Compassion without action: Examining the young consumers consumption and attitude to sustainable consumption

The concept of developing sustainable consumption practices has been a factor for discussion within academic literature for nearly half a decade. Many have argued the consequences of unmonitored consumption practices within a ‘throw-away’ society would lead to environmental, social and economic degeneration. With consumption no longer hindered by global boundaries, there is an emergence of a common class of people within society consuming in vast amounts, over great distances from one another, and reaps irreparable environmental damage. The onus of developing sustainable practice is no longer the sole responsibility of economies of affluence and specific segments of our economy but has become the responsibility of all stakeholders. Using a triangulated qualitative approach, the aim of this research is to advance our understanding and definition of sustainability in the key stakeholder group: The young consumers, Y generation. The research will focus on understanding their consumption footprints and their view of the notion of sustainability. Implications for social changes, policy and practice will also be presented.