If only the treasurer focused a little less on managing political expectations and a little more on managing inflation expectations, we might have avoided this mess in the first place.
Ahead of GDP figures that most expect will show Australia’s economy barely grew in the June quarter, Treasurer Jim Chalmers yet again favoured politics over policy.
He pointed the finger pre-emptively at the Reserve Bank for “smashing the economy” with high interest rates (which nevertheless are far lower than in comparable countries).
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Steven Hamilton is assistant professor of economics at George Washington University and visiting fellow at the Tax and Transfer Policy Institute at the ANU.
