the RBA has two tasks (in setting interest rates, lots of other jobs though) , inflation in a narrow band and employment in a narrow band.
They have one tool to do that. Short of a significant uptick in unemployment, there is no choice left. The main way to bring inflation down is to crash the economy, they prematurely congratulated themselves for reducing inflation and keeping the economy ticking last time they rose rates and yet they didn’t get it under control at all.
Inflation was high before the current Trump and Bibi tanty.
is the system poorly diesgned ? for sure and with this level of simplicity, we could do away with all this performative theatre and replace it with a spreadsheet.
the RBA has two tasks (in setting interest rates, lots of other jobs though) , inflation in a narrow band and employment in a narrow band.
They have one tool to do that. Short of a significant uptick in unemployment, there is no choice left. The main way to bring inflation down is to crash the economy, they prematurely congratulated themselves for reducing inflation and keeping the economy ticking last time they rose rates and yet they didn’t get it under control at all.
Inflation was high before the current Trump and Bibi tanty.
is the system poorly diesgned ? for sure and with this level of simplicity, we could do away with all this performative theatre and replace it with a spreadsheet.