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Stephen Anthony

Will the budget be a requiem for economic responsibility?

If Josh Frydenberg eschews more pump-priming and makes tough fiscal choices to help drive investment and productivity, Tuesday night could be the Treasurer’s finest hour.

Stephen AnthonyEconomist

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The federal budget on Tuesday night will be a requiem to the one-time robustness of Australia’s medium-term macroeconomic frameworks, both fiscal and monetary.

It is sobering to think that just 18 months ago Treasurer Josh Frydenberg was on the brink of delivering a budget surplus. Reserve Bank of Australia governor Philip Lowe had ruled out using unorthodox monetary policy. C’est la vie.

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Stephen Anthony is chief economist at Macroeconomics.

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    Original URL: https://www.afr.com/politics/federal/will-the-budget-be-a-requiem-for-economic-responsibility-20210506-p57pgc