Falling prices are a sign of lack of demand but that is a problem for government to fix in the budget rather than the central bankLast week’s inflation figures showed that prices actually fell on average in the first three months of this year. The figures set off strong speculation that Tuesday will see an interest rate cut from the Reserve Bank. But while low inflation is a sign of a lack of demand in the economy,the latest figures propose that the treasurer, Scott Morrison, and is the one who needs to act,rather than the RBA governor, Glenn Stevens. Related: Asylum and climate change are back in the news – and the response has been pathetic | Lenore Taylor Continue reading...
Source: theguardian.com