Business Daily Media

The Times


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Is federal government spending really to blame for higher inflation? It’s not clear cut

  • Written by: Stephen Bartos, Professor of Economics, University of Canberra

There has been a spate of articles and commentary in recent days calling on the Australian government to reduce spending.

Those calling for government cuts – mostly long-time advocates of smaller government – claim this would lower inflation, and as a consequence reduce interest rates.

In fact, claims that government spending is now a...

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