Deflation or Stagflation
Deflation or Stagflation If I had to choose between these two evils, it would probably be stagflation, but it would be a close-run thing. It looks like the reserve bank may eventually be in the invidious position of one day having to deal with stagflation. Stagflation is roughly defined as the condition in which there […]
A Soft Landing is Now Off the Table
A Soft Landing is Now Off the Table in 2023 A soft landing is now off the table for the Australian economy. The recent national accounts showed that GDP increased by only .2% in the first quarter of this calendar year. This falls within the scope of rounding error which could be revised to a […]
The Reserve Bank of Australia set up to fail
A relatively modern discovery of the branch of economics called macroeconomics is the empirical relationship between the rate of inflation and the rate of unemployment. The relationship, which was discovered in 1958 by UK economist A.W. Phillips, shows an inverse relationship between the level of unemployment and the rate of change in wages. We have […]