"the RBA is limited when a government increases spending, lowers...

  1. 46,263 Posts.
    lightbulb Created with Sketch. 642
    "the RBA is limited when a government increases spending, lowers taxes and provides bill relief etc when the aim is to reduce demand to reduce inflation."

    you're partly correct. the Morrison Govt massively increased spending post covid. talked up the economy and demand while inflation was rising.

    most importantly, the RBA was indeed limited - silent. no action. no discussion. controlled by Govt as they didn't want anything to damage their fragile support.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.