http://www.crikey.com.au/2008/09/08/glenn-stevens-recession-unlikely-jobless-to-rise/ now with extra source Sun, 12 Feb 2012 08:40:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2008/09/08/glenn-stevens-recession-unlikely-jobless-to-rise/#comment-705 OnTheMoney Thu, 01 Jan 1970 10:00:00 +0000 #comment-705 Glenn Stevens is driving monetary policy in a masterly manner. The art of monetary policy is to both increase rates and decrease rates before the evidence of accelerating inflation or rapidly decreasing growth is visible in the rear-view mirror. That way, you can be more subtle in both the up cycle and the down cycle, and hopefully avoid both double digit inflation or a recession. Monetary policy has lags in both directions so you have to take a long view if you want to avoid major economic dislocation. I'm not sure whether the federal opposition understands this. Maybe they do, and they are just trying to hoodwink the voters in the mortgage belts into believing inflation was talked up by Swannie and didn't take off until the Rudd government was in office. I'm sure the Liberals must really understand the difference between inflationary pressures and measured inflation. The way they've been talking though, you would think they were reluctant to hide their "Go For Growth" sign in November 2007. If they had done that, inflation would have possibly reached 10% and there would have been no choice but to grind the economy into a recession. That's what John Howard did in 1982. Learn nothing and forget nothing. The last of the Bourbons. Glenn Stevens is driving monetary policy in a masterly manner. The art of monetary policy is to both increase rates and decrease rates before the evidence of accelerating inflation or rapidly decreasing growth is visible in the rear-view mirror. That way, you can be more subtle in both the up cycle and the down cycle, and hopefully avoid both double digit inflation or a recession. Monetary policy has lags in both directions so you have to take a long view if you want to avoid major economic dislocation. I’m not sure whether the federal opposition understands this. Maybe they do, and they are just trying to hoodwink the voters in the mortgage belts into believing inflation was talked up by Swannie and didn’t take off until the Rudd government was in office. I’m sure the Liberals must really understand the difference between inflationary pressures and measured inflation. The way they’ve been talking though, you would think they were reluctant to hide their “Go For Growth” sign in November 2007. If they had done that, inflation would have possibly reached 10% and there would have been no choice but to grind the economy into a recession. That’s what John Howard did in 1982. Learn nothing and forget nothing. The last of the Bourbons.

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