Opinion
Chalmers can’t have his inflation cake and eat it too
To see through the Treasurer’s subterfuge, you simply need to ask yourself: will the cost of living measures put money into people’s pockets or remove it from them?
Steven HamiltonEconomistYou didn’t need to be a clairvoyant to see the risks excessive fiscal policy posed to inflation and interest rates.
At last year’s pre-election budget, I wrote: “But for a government to be pumping even this much money into the economy on the back of a stronger-than-anticipated recovery smacks of crass pre-election vote buying and is economically irresponsible. If the RBA responds by raising rates during the election campaign, it [the government] will only have itself to blame.”
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