When you study economics in the very first year you are taught you need to examine both expenditure and TAXATION if you want to see how fiscal policy is operating. ( I will ignore the structural effects just of now.)
The budget got into balance for two years , which is all important for where inflation is now, mainly because of a large increase in taxation. Without this the budget would have been significantly in deficit. The budget marginally reduced its structural deficit.
Thus overall fiscal policy was marginally helping reduce output and thus helping reduce inflation even though we had cost push not excess deemed inflation.
As I have emphasised a lot previously it is very hard to tighten fiscal policy once the RBA has started to tighten.
I am again repeating myself but GNE at 1% at an annual rate is not an economy at excess output indeed the opposite.
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