Rising interest rates could spark job losses. Is this the best system we have?The Reserve Bank will consider lifting interest rates again today.But will rapid rates rises cause growth to slow and unemployment to rise? And if they will, what will it mean for the unemployed?This inflation is a global problem and experts everywhere are trying to fix it.
But a few weeks ago, American economist Larry Summers said if US policymakers wanted to get their inflation under control they'd have to allow unemployment to rise significantly in coming years."We need five years of unemployment above 5 per cent to contain inflation — in other words, we need two years of 7.5 per cent unemployment or five years of 6 per cent unemployment or one year of 10 per cent unemployment," he said.But it was callous.
Through different periods of history, economists like him have often suggested the best "remedy" to kill inflation is higher unemployment. According to the logic, when you take money away from people they won't have money to spend, so prices will eventually drop and the economy will re-equilibrate.
Australian free market will be the buffer to the inflation.
Pathetic. If the only way the RBA can slow inflation is to kick mortgage holders in the balls then the economy is stuffed already and these people in power should be held to account.
You love to see it
They COULD delete some of their unbased imaginary money, that would INSTANTLY reduce inflation But nah, lets penalise normal people just trying to keep a roof over their heads
1.35% is blatant deceit,no one can access this rate so why pretend it's relevant.
Except it doesn’t “tackle inflation”. It will have zero affect, never has! I question their agenda and everyone else should too!
Yes we can thank China for lying to the world about covid, those lies have caused millions of deaths and destruction of the world economy, also thanks USA for funding gain of function research at the Wuhan lab
So AnAl lied , am I correct AlboMP , you lied, but you are italian and fatherless, go figure
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