Once Were Inflation Warriors

Terry McCrann on former inflation hawks Hewson and Jonson:

OK, you drop the 2-3 target and replace it with . . . what exactly?

Hewson’s 3-4 per cent? Maybe 4-6 per cent? Perhaps a return to a 1970s: hey babe, whatever feels good? Or a vague, contradictory and confusing ‘check list’?

Whatever, the clear implication is that we should accept a “little more inflation”.

Apart from the fact that the RBA is already explicitly doing that - something most of the critics either don’t understand, or wilfully ignore.

posted on 29 April 2008 by skirchner in Economics, Financial Markets

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