The RBA should NEVER had tightened so aggressively in the first place, and should have eased far earlier. Unfortunately the damage has already been done and the unemployment lines queing. Economic religous professors like Glen Stevens are the biggest and most destructive morons in the world, it is so sad that we give these economists so much power. Rates were raised overly aggressive, and prematurely due to transitory inflation hikes from government stimulus, and then prolonged at crazy levels due to supply shocks floods, electricity etc. etc. WHERE WAS THE RUNAWAY AGGREGATE DEMAND CAUSING THE INFLATION?? It never existed, and fact is, anybody with 2 eyes could see this in the real world.
Nope sorry GLEN record terms of trade mean very little when most of the profits simply float away as foreign sector income.
But thats what happens when your a backward-data looking fool, who's neo-liberal ideologies always require a 'slighty conservative' mindset, and who worships redundent moronic economic ideals like NAIRU at the expense of the the prosperity of the country.
