Category Archives: Inflation

This category provides commentary on the release of inflation data by national statistical agencies

Australian inflation rate – trending down and reflecting a weak economy

The newly-elected conservative Australian government has resumed office with further calls for public spending cuts. Today’s Australian Bureau of Statistics inflation data should disabuse them of this idea. The Australian Bureau of Statistics released the Consumer Price Index, Australia – … Read the rest of this entry »

Posted in Inflation | 1 Comment

Australia is caught in a cyclical malaise – there is nothing ‘new normal’ about it

There was another article in the financial media this weekend running the hypothesis that the stagnant economic conditions that Australia has found itself in is a “new normal”. This is now a repeating theme. I disagree with it. It ignores … Read the rest of this entry »

Posted in Economics, Fiscal Statements, IMF, Inflation, Labour costs | 8 Comments

Australia enters the deflation league of sorry nations

The smug Australian government – conservative to the core, dishonest on a daily basis, running a daily scare campaign that all that matters is the fiscal deficit and how our AAA rating from the (corrupt) rating agencies will be lost … Read the rest of this entry »

Posted in Fiscal Statements, Inflation | 5 Comments

Is exchange rate depreciation inflationary?

One of the first things that conservatives (and most economists which is typically a highly overlapping set) raise when Modern Monetary Theory (MMT) proponents suggest that increased deficits are essential to reduce mass unemployment is the so-called balance of payments … Read the rest of this entry »

Posted in Demise of the Left, Hyperinflation, Inflation | 24 Comments

Overt Monetary Financing – again

Adair Turner has just released a new paper – The Case for Monetary Finance – An Essentially Political Issue – which he presented at the 16th Jacques Polak Annual Research Conference, hosted by the IMF in Washington on November 5-6, … Read the rest of this entry »

Posted in Central banking, Economics, Hyperinflation, Inflation | 44 Comments

Australian inflation trending down – where are all the gold bugs?

The Australian Bureau of Statistics released the Consumer Price Index, Australia – data for the September-quarter 2015 yesterday. The September-quarter inflation rate was 0.5 per cent which translated into an annual inflation rate of 1.5 per cent well below the … Read the rest of this entry »

Posted in Inflation | 11 Comments

Inflation benign in Australia with plenty of scope for fiscal expansion

A few weeks ago (April 8, 2015), I wrote a blog – Monetary policy is largely ineffective – which detailed why fiscal policy is a superior set of spending and taxation tools through which a national government can influence variations … Read the rest of this entry »

Posted in Economics, Inflation | 7 Comments

Australian inflation trending down – lower oil prices and subdued economy

Despite missing out on the recession associated with the GFC, Australia is now following the rest of the world down the decelerating inflation route. Yesterday, the Australian Bureau of Statistics released the Consumer Price Index, Australia – data for the … Read the rest of this entry »

Posted in Inflation | 5 Comments

Japan demonstrates the real limits on government spending

Last week, Reuters put out a story (October 30, 2014) – Special Report: Tsunami evacuees caught in $30 billion Japan money trap (thanks Scott Mc for the link) – which provides an excellent demonstration of the true limits of government … Read the rest of this entry »

Posted in Inflation, Japan, Labour costs | 10 Comments

Australia’s inflation rate falling on back of weak spending

The Australian Bureau of Statistics released the Consumer Price Index, Australia data for the September-quarter 2014 today. The quarterly inflation rate was 0.5 per cent (down from 0.6 per cent last quarter) and this translated into an annual rate of … Read the rest of this entry »

Posted in Inflation | 3 Comments