The RBA shouldn’t be spooked into raising interest rates, but the prospect of inflation in the next few years is an important consideration for central banks around the world.
When policymakers reduce electricity scarcity to a few factors like theft and vandalism, to be solved with technology and stiff penalties, they miss other factors that contribute to electricity theft.
The average price of US goods and services surged in April, leading some to worry the economy is beginning to experience dangerously high levels of inflation. A scholar explains why that’s unlikely.
If the proposed public sector wage freeze is aimed at improving the lot of lower paid workers, there are better alternatives the government should consider.
Unconventional policies can be used to alleviate — instead of exacerbate — inequality, something Canadians are clamouring for. The Bank of Canada needs to rediscover its former innovation zeal.
Massive stimulus plans combined with rising production costs could lead to expectations that inflation will rise. And that alone could trigger an inflationary spiral not seen in 25 years.
Yes, the bank would effectively pay you to borrow money. But negative interest rates won’t please savers, nor will they meet the big challenges of economic recovery.
Massive borrowing to fund NZ’s economic recovery due to COVID-19 cannot be written off without the risk of worsening the crisis it was designed to meet.