booz, it absolutely, completely and totally foolishness what the economists say. Their models work in straight lines.
Next year Australia loses the input of huge infrastructure projects in Queensland and W.A. The resultant unemployment won't be pretty.
I've heard such garbage such as:
next year the AUD will drop as Chinese imports slow. Inflation will rise as will unemployment and so will interest rates blah blah....
Now it looks to me that stimulus would be the RBAs first imperative in the above and inflation would be of little concern. The next cpi figures will probably show a slowing of inflation.
In fact deflation would be more on the mind of Glenn Stevens than hyped up fictitious inflationary pressures. A lower AUD does not equal rising inflation in an economy where wage growth has stalled and demand is drying up.
Let the issues fall where they may but what will happen next year with US interest rates pressures will be more relevant than the huff and puff from ignorant, overpaid and lazy economic commentators.
They should put their irrelevant economic degrees to better use in domestic toilets.
