The Wire

As the global financial crisis unfolds, Australia’s position is becoming more and more uncertain. While Prime Minister Kevin Rudd says Australia’s economy is resilient, critics have warned that this is not going to stop the international recession from hitting our shores. Worldwide, Governments are centralizing their banking systems using taxpayer’s money in a bid to maintain economic stability. But Federal Treasurer Wayne Swan wants to hold on to the nation’s budget surplus and says he is not ready to undergo similar changes. The Wire’s Anne von Fehrn spoke to Dr Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney. She began by asking are we likely to head into a recession?