The federal and NSW governments are making extra spending harder to achieve. Talk about a fiscal own goal.
New research suggests that inflation might have been very different in Australia in recent years than what the CPI has told us.
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.
The Reserve Bank board is likely to complete the transition to an entirely new monetary policy centred around quantitative easing when it meets in November.
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.