"[N]obody should be under any illusion: the Government’s ongoing stimulatory fiscal policy is contributing to the need for the Reserve Bank to increase interest rates, something which the Treasury warned the Minister just weeks before the Budget when the Minister decided he wanted to dole out some cash sweeteners....
"It’s like a car being driven with one foot on the brake and the other on the accelerator – the more the Government stimulates the economy with fiscal policy, the harder the Reserve Bank will need to apply the brakes of higher interest rates."~ Don Brash, from his op-ed 'Who is really responsible for getting [price] inflation under control?' [link fixed]
Wednesday, 1 June 2022
Who is really responsible for getting inflation under control?
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