Comment on We won’t fix inflation while economists stay in denial about its causes
DavidDoesLemmy@aussie.zone 1 year agoI don’t know if that’s true. They want to get people spending less. Being unemployed is one reason you might spend less. Having high mortgage repayments is another reason.
macrocephalic@kbin.social 1 year ago
https://www.abc.net.au/news/2023-06-25/the-rba-wants-more-unemployment-lets-applaud-it/102506500
It's well known that interest rates cause the unemployment level to rise, the RBA governor even covered it in a speech recently (https://www.theguardian.com/business/2023/jun/22/rba-reserve-bank-australia-unemployment-inflation) and they have a page explaining it (https://www.rba.gov.au/education/resources/explainers/nairu.html).
Even though it's been suggested and documented that our current inflation issues are driven by corporate price rises and lingering pandemic supply issues, the government outsources the responsibility for interest rates to the RBA - but the only tool they have is monetary policy.
Related: it's shown that full employment benefits everyone, but it benefits the least advantaged most https://grattan.edu.au/news/when-unemployment-falls-disadvantaged-workers-benefit-most/ so there really is a dichotomy between corporate profits and social wellbeing.