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.
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.
