Why a COVID vaccine won’t end the era of easy money – Sydney Morning Herald

Inflation has to be actually rising, RBA Governor Phil Lowe says, a break from orthodoxy of recent decades. With a six-month lifespan, the brevity of Australia’s quantitative easing program “almost guarantees that the RBA will not have had time to see any meaningful macro improvement by the time the program is completed,” wrote Ben Jarman, an economist at JPMorgan Chase in Sydney, in a note. “This biases the board toward extension.”
It’s also important not to conflate a pickup in activity with a…

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