eFocus                                            September 2018

Dear <<First Name>>

Despite greater independence of central banks in the English-speaking world through the 1980s and 1990s, there is a tendency and a desire for politicians to want to engineer a system which gives them influence over interest rates and the businesses which lend money.

In Australia, this has accelerated since the Global Financial Crisis, which was used by then-Prime Minister Rudd to attack market-based capitalism and quickly return the state to the commanding heights of the economy.

These sentiments are fuelled by sections of the media.

This was on display with an interview by ABC’s Leigh Sales with Westpac CEO on an out of cycle rate increase.

Sales’ questioning included her view that banks could absorb higher wholesale borrowing costs because they seemingly made large profits.

How did Sales come to this conclusion? Was 
it earnings per share metric or an Elizabeth Warren-style understanding of corporations? Why do journalists and the politicians who take their lead from the press gallery follow this line of thinking? Are central banks under threat and losing their independence?

Political leaders believe that they have better insights than central bankers and markets.

The fatal conceit of politicians that have central planning inclinations — and who also believe that there is an appropriate level of profit for private banks — is that they ignore the fact that the price of money (interest rates) serve as a signal for decision making.

This applies to personal borrowers as well as banks.

Holding rates low can, as Austrian business cycle theory explains, result in an unstable and volatile balance between savings and investment.

Put simply, cheap money encourages lending which chases assets and money flows into sub-optimal investments.

Asset bubbles emerge, good money flows into bad projects with increasing velocity, before panic emerges after 
fundamental value is questioned. The result is a crash and recession; hence business cycles. In Australia, this may be most evident in larger, east coast property markets which by some measures have reached bubble-like territory.

Understanding the factors which influence interest rates and money supply are important for anyone studying economics or running their own businesses.

In addition to reading Hayek and others from the Austrian school, attending talks from those with a range of views on monetary supply is important to gain insights into business cycles.

For this reason, Mannkal is pleased to work with UWA’s Student Managed Investment Fund to present a talk by
Dr. Alex Heath of the Reserve Bank of Australia on the ‘WA Economic Outlook’ tomorrow, Wednesday, 5th September, 2018. For details, and to book, click here.

We will be asking why global interest rates are shifting and what this will mean for the future of Australian economic growth.

Andrew Pickford
Executive Director

Top: Mannkal delegation at the Parliament of Queensland. Bottom left: Mannkal Scholars with the Hon. Tony Abbott. Bottom right: Mannkal Scholars with the Hon. Peter Dutton.


Do Booms Always End in Tears?
WA Economic Outlook with Dr Alex Heath of the Reserve Bank of Australia
10am - 11am, Wednesday, 5th September
Wesfarmers Lecture Theatre, UWA

Held in conjunction with the Student Managed Investment Fund (SMIF), this is an opportunity for students to gain an insight into the future direction of the WA economy as told by Alexandra Heath, the Head of the Economic Analysis Department at the Reserve Bank of Australia.

Seats are limited! Click here to reserve your spot.
Student Seminar: Professional Skills
12pm - 1:30pm Thursday, 6th September
'Hayek on Hood' (Mannkal office), 3/31 Hood St, Subiaco
Mannkal's Scholarships Coordinator, Sharni Cutajar, will host an intensive student seminar covering essential professional skills required for success in business.​

Seats are limited! RSVP to Llew Cross at to secure your spot.
Student Seminar: Federalism with Prof Lorraine Finlay
12pm - 2pm Thursday, 13th September
'Hayek on Hood' (Mannkal office), 3/31 Hood St, Subiaco

Murdoch Law lecturer Lorraine Finlay will return to the Mannkal office to talk about the original ideas of the Commonwealth, and what types of legal hurdles we would have to clear to return to federalism.

Seats are limited! RSVP to Llew Cross at to secure your spot.
Scroll down for more events...
30th September - 6th October, Gran Canaria (Spain)
These lucky students have each received a Mannkal Scholarship covering the entire cost of attending the week-long General Meeting of the prestigious Mont Pelerin Society. The conference will take place on the Spanish island of Gran Canaria.
28th - 30th September

Now in its second year, this is a free-thinking conference of genuinely dangerous and disruptive ideas. The most disruptive idea in the world is that “all men (and women) are born equal”, and the consequences that flow from that. This conference features speakers who are intellectual disruptors exploring a vast array of areas like free speech, climate change, indigenous affairs, democracy and economics.

Mannkal Scholar selections have been announced - general registrations are still open!
Mont Pelerin Society General Meeting: Competition, Discovery, and the Pursuit of Happiness 
30th September - 6th October
Gran Canaria (Spain)

The Mont Pelerin Society welcomes you to the Canary Islands to engage in a lively discussion of modern issues, such as competition, separatist movements, cryptocurrencies, overlapping jurisdictions, and the free movement of people, goods, and capital.

Mannkal Scholar selections have been announced - general member registrations are still open!
28-29 September, Brisbane
Clockwise from top left: Callum Hudson, Simran Panag, Christian Bien, Anis Rezae, Patrick Leclezio, Angus Young, Nicholas May, Benjamin Thomas, Carmen Gianfrancesco, Nathanael Price, Micha Gartz, Matthew Newbound and Leo Prendeville.


Mannkal offers international scholarships to Western Australian students. These unique scholarships grant interested young adults a once-in-a-lifetime opportunity to intern at an international think tank.

To apply please email the following documents to Kate Wagstaff at

  • Resume/Curriculum Vitae (up to two pages) including photograph (within CV)
  • Statement of Academic Record (an unofficial transcript is sufficient)
  • Cover Letter (1 page) addressing one of the opportunities on offer. Choose one host think tank opportunity from our list here, and explain why you are the best candidate for that particular scholarship and what you hope to gain from the experience
  • Please write on only one of the opportunities on offer. Applicants who progress through to the interview stage of the selection process will be considered for all opportunities.
Our multi-step application process involves getting to know you through research reports, events, interviews and workshops. The process can take several months, beginning with your application - so the sooner you apply the better! 

Each year, mid-year internship applications close in early March, and places are determined around April/May. End of year internship applications close in August, and places are finalised in October/November.

Students who are not successful in receiving a scholarship in one intake will still be eligible for the next intake. The longer we have to get to know you, the better we are able to potentially match you with a suitable host think-tank. 

Now is the time to apply, whether you're in first or last year at University. 
Mannkal Economic Education Foundation

Visit our website 

Hayek on Hood, 3/31, Hood Street, Subiaco, Western Australia 6008

(08) 9382 1288

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