by While this post is specific to Australia, the reasons for the recent spike in "inflation" are not unique to Australia. The inflation that is now turning out to be transitory was not the result of a wage-price spiral as central bank models assume. Rather, it was a consequence of supply shocks owing to the pandemic followed by sanctions in response to the conflict in Ukraine. Now that supply chains are beginning to function again or have been replaced or substituted, the inflation metrics are falling, as economists like Bill that were predicting transitory inflation had argued.William Mitchell — Modern Monetary TheoryInflation drops sharply in Australia but it is not the work of the RBABill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE),
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While this post is specific to Australia, the reasons for the recent spike in "inflation" are not unique to Australia. The inflation that is now turning out to be transitory was not the result of a wage-price spiral as central bank models assume. Rather, it was a consequence of supply shocks owing to the pandemic followed by sanctions in response to the conflict in Ukraine. Now that supply chains are beginning to function again or have been replaced or substituted, the inflation metrics are falling, as economists like Bill that were predicting transitory inflation had argued.
William Mitchell — Modern Monetary TheoryInflation drops sharply in Australia but it is not the work of the RBA
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia P