Why a smooth landing means watching wages, not inflation
If the Albanese Government’s multi-employer bargaining and restrictions on the gig economy push up wages growth in the tight labour market it may take a recession to get inflation under control.
Some commentators see the peaking of inflation numbers in many countries as heralding an economic smooth landing. The hope is that inflation will ease without countries falling into a recession.
What is important for a smooth landing is not a peak in inflation, but rather what happens to wages.
