The latest of these will be held at the University of Sydney on Thursday 10 October, which will also be live streamed by webinar.
Co-sponsored by the Commonwealth Bank, attendees will hear from a diverse panel of speakers from the Reserve Bank of Australia, the Department of Foreign Affairs and Trade and senior market economists from AMP and Barrenjoey Capital Partners. The event is supported by EY’s Oceania Economics team.
Closing out the three-hour session will be CBA’s Chief Economist and former Chair of the ABE, Stephen Halmarick, who will share his reflections on why economics is front and centre of our day-to-day lives and the opportunities for young people to make a career in the profession.
Here, in conversation with CBA Newsroom editor-in-chief Danny John, Stephen gives a flavour of his thinking and explains how economics has shaped his life, both professionally and personally.
DJ: Why is economics important to everyday Australians rather than just being the preserve of economists, policymakers and businesspeople?
SH: I think it is important for everyone to understand economics. At its core, economics is really all about the use of limited resources (goods and services) to satisfy the needs and wants of people and businesses. It is also very much about the choices people make and why do they make those choices, so it’s also very much about human psychology. It’s my view it that if more people understood the simple facts of demand and supply, they would make better decisions that make their lives a bit easier. Economics also helps people see the connection between events, people and financial markets and the context in which decisions are made. The better people understand what is really going on, the better decisions they can make.
DJ: And why should it be necessary for young people to get a grounding in economics?
SH: If young people really want to understand how the world works, then they need to understand economics. For young people it’s also key for them to understand that economics can help provide answers and solutions to the many problems the world is currently facing, such as climate change, sustainability, the housing shortage, income and wealth inequality etc.
DJ: What sparked your interest in economics as a young man and why did you end up choosing the discipline as a career?
SH: I had a strong interest in economics at school because I was always interested in the flow of money, politics and how society worked. I was lucky to have a very good teacher when I did HSC economics, so I ended up doing very well in economics at HSC level. I always knew that I wanted to go to university and my HSC results made choosing an economics degree at Macquarie University an easy choice. I was also fortunate that the years I was at university (1983-1985) was the period where the Hawke/Keating government was deregulating the Australian economy and financial system – so there was strong demand for economics graduates when I finished my degree. I started as a graduate trainee in the economics department of Westpac Bank in 1986 and have worked as an economist ever since.
DJ: Unfortunately, there seems to a dearth or at least a decline in high school students taking economics as a Year 11 and 12 subject. How concerned are you about this trend and what could the long-term effects be of this?
SH: The decline in the number of school students taking economics is very concerning, especially among girls. The perception is that economics is ‘too hard’ and makes getting a high ATAR more difficult, especially given the alternative of Business Studies. There is also, as I understand, a shortage of economics teachers. If less and less people understand at least the basics of economics, then it is going to be more difficult for our political and business leaders to make policy changes, as it will be more difficult for people to understand the economic arguments. This is a real concern, as I think it is a widely held view that the Australian economy would benefit from some productivity enhancing reforms and we need leaders who can prosecute the need for these changes.
DJ: What can be done to reverse this trend and how can economics be “sold” to students as a “must-do/can’t do without” subject on the curriculum, both at high school and at university?
SH: I am seeing some great activity in this space, trying to get more school children interested in economics, like the ABE events that have been held all around Australia, including here in Sydney. I know that many other Chief Economists do what I often do, and that is go into schools and speak to economics students about the benefits and advantages of doing economics and school and university. Government bodies such as the RBA and Treasury are also very active in supporting more students to study Economics. Apart from the benefits to society from understanding economics, there are also some great personal benefits. I have found economics to be very rewarding – you get to meet a lot of very smart people who ask good questions, who can travel the world to share views (I myself have visited 30 different countries), you can really help people make good decisions that lead to better outcomes and you get paid pretty well.
DJ: That said, you have helped recruit many young economists over the years so how hopeful are you about the future of the profession and its importance to the broader community?
SH: I am very pleased to say that I have had a hand in hiring several great young economists over the years. We have one economists in the CBA Economics team now that started as a summer intern and then become full-time and another one starting in early 2025. In addition, I hired young economists when I was at Colonial First State Global Asset Management and Citibank. So, I am hopeful about the future. There are lots of really smart young people coming through the system, which makes me more optimistic.
DJ: And what would you say to a young person today thinking of doing economics or being an economist?
SH: Do it! You will find the subject incredibly interesting and very intellectually stimulating. A career as an economist can also be very rewarding. If you want to help solve some of the main issues in the world today, then economics is the key!
Stephen Halmarick has been Chief Economist of CBA since April 2020, a role he has combined with the position of Head of Global Economic & Markets Research to which he was appointed in January 2018.
A veteran of financial markets economics with 39 years’ experience, Stephen is responsible for the team of economists and strategists that cover Australian economics, international economics, interest rates,, foreign exchange and commodities research.
He is also a key spokesperson to clients and media on macroeconomic themes and a broad range of financial market issues. Stephen was chair of the ABE between 2008 and 2017. He recently announced his intention to step down as CBA’s Chief Economist in early 2025.
About the ABE schools’ event, co-sponsored by CBA
Entitled “Would you like the tools to change the world?” year 9 and 10 students can register to attend in person here: Schools Event - University of Sydney Business School Registration, Thu 10/10/2024 at 11:00 am | Eventbrite
Or online here: Schools Event - University of Sydney Business School (WEBINAR) Registration, Thu 10/10/2024 at 11:30 am | Eventbrite
It will be held in the ABC Lecture Theatre 1130, University of Sydney Business School, Darlington Campus, Camperdown, NSW, 2050, with registration opening at 11am and the event itself kicking off at 11.34am. The session includes a panel discussion with the audience with the webinar ending at 1pm and lunch and networking for in-person attendees through to 2pm when the event formally concludes.
More for information go to abe.org.au or email info@abe.org.au
Banner image: Samara Hammoud, junior associate in CBA's Global Economic Markets Research team, and Stephen Halmarick
