Business
Why we’re likely to avoid the taper tantrum – The Australian Financial Review
The RBA is more concerned about persistent disinflation given the downward trend in core inflation and inflation expectations since 2016.
Achieving the quickest return of inflation back to 2.5 per cent would be unlikely to be in the public interest if it came at the cost of a weakening of balance sheets and an unsustainable build up of leverage in response to historically low interest rates.
In 2017 he expanded on these frictions, explaining that in terms of the issues that we are considering, the unemployment rate is a bit high it is not terribly high, but it is a bit high. It would be better if it were lower. The inflation rate…
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