Energy subsidies are not disinflationary. The budget is expansionary. And the wages lever the government is pulling will also make the RBA’s job harder.
After more than a year in government and amid the Reserve Bank’s ongoing campaign to tighten financial conditions, which included raising interest rates by another quarter of a percentage point on Tuesday, the government’s claims this is all someone else’s fault are increasingly untenable.
The Treasurer can’t keep deflecting the blame for higher interest rates. Alex Ellinghausen
Loading...
Steven Hamilton is assistant professor of economics at George Washington University and visiting fellow at the Tax and Transfer Policy Institute at the ANU.
