Our economy has suffered a -1.9% deflation rate over the last 3 months and I'll bet the trend is worrying the RBA like never before, ok perhaps 1953, and as we're only 4 months through the pandemic with maybe 8 more months to go domestically, one or maybe 2 more years internationally, spending is being largely driven by governments.
Even then such spending is only just keeping the global economic system afloat if not sliding increment by increment.
In reality CBs gloves aren't really off as economies slow and although we are the economic pinup boy the RBA is keeping its ammo dry knowing that fiscal policy is coming to the end of its tether. So MMT isn't working as it should proves that it's passed it's theoretical used by date. Will it laud over a 5% deflation rate to come?
One more economic, financial or geopolitical shock could have a dramatic effect, destabilising major economic equilibrium as fear replaces despair.
I am amazed how most people look at events now and view them in terms of the past. That will make future events more harrowing.
