Monetary Policy

A new report warns Australia’s path to economic stability hinges on tackling inflation, tax reform, and curbing overspending.

Persistent inflation, sluggish productivity growth and expansionary fiscal policy have trapped Australia in a precarious economic position, with big implications for the next federal election.

Monetary policy missteps can arise when journalists and politicians confuse relative price movements for inflation, leading to misguided calls for rate cuts based on things like food price fluctuations rather than the underlying drivers of inflation.

The Labor government’s potential deal with the Greens to eliminate negative gearing and reduce the capital gains tax discount may ultimately be more symbolic than effective in tackling Australia’s housing affordability crisis.

Ross Gittins’ recent column misunderstands basic economics, resulting in a confused narrative that oversimplifies inflation, misreads corporate profits, and misinterprets the relationship between industry concentration and competition.