The Conversation asked economists about the budget. I thought the questions poorly framed.
Q: What grade would you give the budget, given Chalmers’ stated objective of “fighting inflation in the near term and then growth in the medium term”? A, B, C, D, E or F
My answer: An exclusive, or even primary, focus on a rapid return to an arbitrary inflation target represents a misconception of the role of fiscal policy.
I decline to offer a rating on this basis.
Considered more generally, I would give the budget a grade of C.
It is essentially a continuation of the policies of the previous Coalition government
Q: Is the budget likely to achieve its aim of getting inflation back within the RBA target band by the end of this year and back to 2.75% by mid next year?
My
Read More »