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Business Spectator Column

This week’s Business Spectator column.  If you would like to receive an unedited version by email on Fridays, let me know and I will put you on the distribution list.  Email info at institutional-economics dot com.

posted on 03 May 2008 by skirchner in Economics, Financial Markets

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Fiscal policy has been and will remain irrelevant to inflation and interest rate outcomes, which are a function of loose monetary policy and developments in global capital markets.

Ok, so lets say Swannie decides to hand back the entire surplus as tax cuts.  I struggle understand how injecting $20 odd billion into the economy would not have some inflationary impact.

Posted by .(JavaScript must be enabled to view this email address)  on  05/03  at  11:24 AM


Alternatively, if the Govt was really serious about reducing inflation (ie. excess money in the economy) it could take that $31bn and simply destroy it!

Set up a big bonfire in front of Parliament House.

Posted by .(JavaScript must be enabled to view this email address)  on  05/06  at  11:52 AM



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