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c/australia · by okwithmydecay@leminal.space · 127d

Australians warned to brace for major inflation hit, as Trump's peace plans unclear

https://www.sbs.com.au/news/article/economic-impacts-war-in-the-middle-east/aiuz9uggn

24 points · 17 comments · view on lemmy.world

17 Comments

Mantzy81@aussie.zone · 15 pts · 127d (11 replies)

Can't wait for the interest rates to go up to "curb our spending" on basic necessities. 🙄

YeahToast@aussie.zone · 7 pts · 127d (10 replies)

I've never really understood the rationale of increasing interest rates when inflation is being driven by international events rather than discretionary spending. Just seems dumb.

slazer2au@lemmy.world · 5 pts · 127d

Banks need more money to cover the losses they had when it middle east went pear shaped, again

/S

hanrahan@slrpnk.net · 2 pts · 126d

the RBA has two tasks (in setting interest rates, lots of other jobs though) , inflation in a narrow band and employment in a narrow band.

They have one tool to do that. Short of a significant uptick in unemployment, there is no choice left. The main way to bring inflation down is to crash the economy, they prematurely congratulated themselves for reducing inflation and keeping the economy ticking last time they rose rates and yet they didn't get it under control at all.

Inflation was high before the current Trump and Bibi tanty.

is the system poorly diesgned ? for sure and with this level of simplicity, we could do away with all this performative theatre and replace it with a spreadsheet.

thatKamGuy@sh.itjust.works · 1 pts · 126d

When the only tool you have is a hammer, everything looks like a nail.

FreedomAdvocate@lemmy.net.au · -9 pts · 127d (6 replies)

Inflation isn’t being driven by international events, it’s being driven by government spending.

YeahToast@aussie.zone · 4 pts · 126d (2 replies)

Hmm, have you missed the last 6 weeks per chance ?

FreedomAdvocate@lemmy.net.au · 1 pts · 126d (1 reply)

Did you miss the interest rate rise due to inflation before the war?

hanrahan@slrpnk.net · 2 pts · 126d

here's am analysis from before the war

https://theconversation.com/is-federal-government-spending-really-to-blame-for-higher-inflation-its-not-clear-cut-274961

But the current fiscal settings are not the primary cause of the uptick in inflation.

Those calling for government cuts – mostly long-time advocates of smaller government – claim this would lower inflation, and as a consequence reduce interest rates.

In fact, claims that government spending is now a very large share of the economy are exaggerated.

Cypher@aussie.zone · 3 pts · 126d (2 replies)

So what does glue taste like?

FreedomAdvocate@lemmy.net.au · 0 pts · 126d (1 reply)

Explain the out of control inflation before the war then……

We are pretty much the only western country in the world who RAISED interest rates before the war. Every economist has been saying for months and months that the inflation is mostly caused by the out of control government spending.

hanrahan@slrpnk.net · 3 pts · 126d

Every economist has been saying for months and months that the inflation is mostly caused by the out of control government spending.

that is not true, some economists did, others did not, as is the way for economists.

https://theconversation.com/is-federal-government-spending-really-to-blame-for-higher-inflation-its-not-clear-cut-274961

Those calling for government cuts – mostly long-time advocates of smaller government – claim this would lower inflation, and as a consequence reduce interest rates.

In fact, claims that government spending is now a very large share of the economy are exaggerated.

the current fiscal settings are not the primary cause of the uptick in inflation.

NooBoY@lemmy.dbzer0.com · 2 pts · 127d

Can the government put in place measures to stop companies from increasing the price more than inflation. Something like taking the year’s profits.

hanrahan@slrpnk.net · 2 pts · 126d

I saw the Chief Economist from Westpac suggesting 3 more increases in a row.

No1@aussie.zone · 1 pts · 126d

Peace plans

snorts

craiglambie42@fosstodon.org · 0 pts · 125d (1 reply)

@okwithmydecay any idea why I can't interact with lemmy using my mastodon AP account? Seems un fedi to have tobhave multiple accounts to comment...?

okwithmydecay@leminal.space · 1 pts · 114d

@craiglambie42@fosstodon.org you're able to comment on Lemmy posts as you have done, what other interactions are you looking for? There is a discussion of Lemmy interoperability with Mastodon.