We are living in times close to if not at full employment. The budget last night did not change fiscal policy from last year. It is neither more expansionary nor has it become less expansionary. With interest rates almost at zero no-one is taking their foot off the accelerator.
As Richard Holden points out no attack on the structural deficit has been made. The Liberals are a large spending government, way above that made by the ALP when avoiding the GFC. They haven't even come close to getting to their high point as yet.
Inflation is more than likely to increase and thus interest rates are as well. the CBA has estimated the neutral rate is 1.25% so if the RBA has to adopt contractionary policy they will go much higher than that.
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