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Speaking of monetary vs fiscal policy (Public Board)

by ,ndo, No refunds or exchanges! Fullstop!, Wednesday, September 25, 2024, 02:28 (305 days ago)

https://www.skynews.com.au/business/finance/nightmare-scenario-could-see-australia-miss-out-on-rate-cuts-as-hsbc-chief-economist-paul-bloxham-warns-quite-some-time-before-any-relief/news-story/99a50896410afeaa9cd87ca653fca7d4

My country is doing the exact same thing again. The Reserve Bank of Australia and the Commonwealth government opposing each other. The RBA is using monetary policy to try to reduce economic activity (because inflation is too high) while the government is using fiscal policy to increase activity (by spending large sums of cash to "help people with the cost of living"). Of course the government isn't claiming that it is increasing activity but that is the effect. So fiscal policy is fighting monetary policy. Again.

Do your countries experience this rubbish?

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Exactly, precisely the same

by Cornpop Sutton ⌂, A bad bad dude who makes good shine., Wednesday, September 25, 2024, 12:45 (305 days ago) @ ,ndo
edited by Cornpop Sutton, Wednesday, September 25, 2024, 13:13

"Anti inflation" measures under liberals are always spending programs that increase the debt. Weak minded liberals only talk about inflation as end cost to the consumer. They reject and don't acknowledge the classic economic principle that inflation is increase in money supply, period.

On the other side, Republicans generally hate taxes so they're usually against any inflationary policies such as massive expansions of social programs.

However, both sides absolutely love their wars and funding wars.

Both sides are totally bereft of real economic principles. And they conflate many policies, for instance, Trump talks major tariffs (which dems criticize publicly but which have been maintained by Biden) and plays up the revenues. The lefties illiterately say tariffs are "inflationary" because they increase some consumer end costs. While tariffs in general are a tool to encourage domestic production. (I always thought of import tariff revenue as secondary but both sides focus on only that.)

I don't have a ton of confidence in Trump's grasp of policy matters. He's pro energy development as a jingoistic thing. Actually energy cost increases help drive inflation. So he'll help despite himself. At least there's that.

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