Working Papers

‘Force Interest Rates Down’

One of the Labor Party’s Google Ads that have popped up to the right of this post:

Interest Rates in 2007.  Families Today Are Carrying Record Debt.  Labor Will Force Rates Down.

Clicking on to Kevin07.com.au, I could not find how Labor proposed to ‘force’ rates down, but it’s an interesting verb choice.  Even the government’s claims about interest rates in the 2004 campaign did not go that far.

You would think Labor might have learned from the government’s experience that there is no point in making the claim that a government can lower interest rates.  The direction of Australian interest rates is determined by business cycle and international influences over which the government (and even the RBA) have very little effective control.

posted on 28 September 2007 by skirchner in Economics, Financial Markets, Politics

(0) Comments | Permalink | Main

| More

Next entry: The Credit Crunch that Wasn’t

Previous entry: Bretton Woods Revivalism in the WSJ

Follow insteconomics on Twitter