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It just shows the economic theory we have relied on for years is being flipped on its head. RBA is technically correct in its assessment but we have seen over the last 2 years the theory has not been working.
Increased Rates > Unemployment goes down > House prices go up > Wages still stable.
Think its time many of us economists reassess how the market is going to function in the next 5-10 years.
This idea only works if it’s wage growth driving Inflation. Since we all know it’s corporate profits, this idea both doesn’t fix Inflation and hurts those who lose their jobs unnecessary