The RBA has ushered Australia into the era of quantitative easing by arguing that inflation must rise, and it can't rise until wages and jobs do.
We won't just achieve inflation by low interest rates — a whole new approach to monetary policy might be needed.
A weak global economy and soft demand and investment will drive the RBA to reveal a new world of monetary policy for Australia this afternoon.
With inflation out for the count, the RBA can fulfil its goal of focusing on full employment.
First it was fiscal policy. Now it's monetary policy. One by one the key tenets of neoliberalism are giving way in the face of global recession.
The Reserve Bank says it will no longer look to expectations of inflation to guide it on monetary policy. Rather, it will focus on the here and now.
It seems we're all in agreement that government spending is needed to help prop up the economy during the pandemic. But how long will that attitude last?
In a bitter blow for neoliberals, the US Federal Reserve has embraced a policy that emphasises unemployment more, and inflation less.
Grocery prices are on the rise for the first time in a long time. Combined with a rise in unemployment, and a decline in wages, Australians are about to get a nasty shock.