It’s easy enough to understand the treasurer’s criticism of the RBA in political terms. But the inflation target that is good for the central bank as an institution is not so good for the economy.
Already a subscriber?Six months ago, federal Treasurer Jim Chalmers was planning legislation to remove his own power to over-ride decisions of the Reserve Bank.
First, they have put downward pressure on wages, which remain well below their 2019 levels in real terms.’ other concern is the weakness of economic growth and the possibility that this might tip over into recession, for which the government would be blamed. Chalmers’ power to override the Reserve Bank, a genuine if drastic option under the previous system, is effectively a dead letter, which is why last year’s review into the RBA was keen to ditch it.
Finally, we had the burst of inflation as COVID restrictions were eased, and attempts by households to spend their accumulated savings ran into supply chain disruptions made worse by the pandemic. The Reserve Bank has expressed concern that, without a rapid return to 2-3 per cent inflation, expectations might form around current levels near 4 per cent.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Chalmers calls Peter Dutton ‘most divisive leader’ in modern Australian historyTreasurer uses John Curtin Oration to accuse opposition leader of deliberately stoking culture wars and division
Read more »
Chalmers calls Dutton most divisive Australian leader in modern historyEconomic dislocation and inequality are driving violence around the world, Treasurer Jim Chalmers has warned.
Read more »
Chalmers calls Dutton most divisive Australian leader in modern historyEconomic dislocation and inequality are driving violence around the world, Treasurer Jim Chalmers has warned.
Read more »
Chalmers calls Dutton most divisive Australian leader in modern historyEconomic dislocation and inequality are driving violence around the world, Treasurer Jim Chalmers has warned.
Read more »
Australian chef Maggie Beer in hospital after fall at South Australian homeIn a statement on social media on Sunday night, her family said she suffered minor bone fractures and related injuries.
Read more »
Paris Olympics: Australian hockey player arrested in Paris allegedly trying to buy cocaineAn Australian hockey player has been arrested in Paris, the Australian Olympic Committee has confirmed.
Read more »