[edited for typos]
#GregJericho lays into the #RBA ‘s latest gaffe.

[The RBA said] “in addition, the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation. Short-term measures of inflation expectations have already risen. As a result, the Board judged that there is a material risk that inflation will remain above target for longer than previously anticipated.” This is a total failure of basic economics, and suggestive of a panicked RBA board.

The impact on oil prices is due to the attacks on Iran and the blockage of cargo through the Strait of Hormuz. Nothing the RBA does will affect that.”

Read that again: “NOTHING the RBA does” will mitigate fuel cost increases due to the crisis in the MIddel East.

It couldn’t be clearer. An Economics 101 student would not even need the clarification. What is the RBA doing FFS? It seems clueless at times.

Read more:
https://thepoint.com.au/opinions/260317-raising-rates-while-petrol-prices-soar-shows-the-rba-ignoring-reality-and-basic-economics

#Inflation #RBA #CashRate #AusPol #Economics #NeoLiberalism

Labor must stop juicing house prices and make buying a home the Australian dream – not negatively gearing one | Greg Jericho
By Greg Jericho

The rumours of action on the capital gains tax discount and negative gearing are louder than before any budget this century. But is the PM up to the task?

https://www.theguardian.com/business/grogonomics/2026/mar/11/labor-government-house-prices-capital-gains-tax-negative-gearing-budget

#Housing #Laborparty #Australianews #Australianpolitics #Tax #Australianeconomy #GregJericho

I never get tired of tooting #GregJericho ‘s articles, because what he says, most of the time, is not just informative, it’s a booster shot against the #FakeNews and #EconomicMisInformation the #msm spews out — unfortunately with that much misinformation being the main narrative of all but a few news outlets and the #FifthEstate, a lot of it is bound to be believed as truth: like the furphy about increasing wages driving up inflation — everyone should know by now the inflationary dragon is #GreedFlation.

“There hasn’t been a wage breakout since I was in primary school but do not worry – the RBA is still on the watch, ever on alert to raise interest rates in an effort to increase unemployment and lower wage growth.”
Read more:
https://www.theguardian.com/business/grogonomics/2026/feb/18/real-wages-fall-australia-workers-economy

But the RBA is not about to let a debuked economic theory go to waste. So Greg is warning us of another rate rise likely to come if the RBA stays true to form — and why shouldn’t it?

Read more:
https://thepoint.com.au/opinions/260220-dont-panic-rba-low-unemployment-is-a-good-thing

#RBA #NeoClassicalEconomics #NeoLiberalEconomics #AusPol #CashRate #Inflation #WageGrowth

Are we starting to see some sort of pushback against the neoliberal thinking of the majority of economists who harp on about the wage-inflation spiral — or to put it another way the need for some workers to live on the dole so that the rest of us can have a more confortable life free of inflationary pressures.

Here is someone other than #GregJericho of The Australian Institute that also thinks this #RBA mantra is utter bull dust.

“…[economists] obsess about an oft talked about, but mysterious concept called the NAIRU, the non-accelerating inflation rate of unemployment.

The theory goes that, if you have just the right amount of workers on the unemployment scrap heap, you can keep inflation in check.

The problem is that no-one knows exactly what the magic unemployment rate is. Even more confusing, it seems to change and, on occasions, such as the past few years, not hold true at all.”

Read more
https://www.abc.net.au/news/2026-02-21/why-economists-hate-low-unemployment-for-inflation/106367852

#unemployment #WageInflationSpiral #NAIRU #Economy #AusPol #NeoClassicalEconomics #NeoLiberalEconomicTheory
#CapoitalismUnbound

#GregJericho must be getting very tired of stating obvious economics facts. I’m surprised he is not blue in the face. There are no more deaf people than those who do not wnat to hear (or those infected by the dreaded #NeoClassical / #NeoLiberal economic fallacies — all of them debunked in 2008 — chief amongst them the utterly stupid Wage-Inflation spiral, one of RBA’s dogma (the more I read/learn about economists the more I am convinced they are inured to facts).

‘There hasn’t been a wage breakout since I was in primary school but do not worry – the RBA is still on the watch, ever on alert to raise interest rates in an effort to increase unemployment and lower wage growth.’
Source: Greg Jericho in The Guardian
https://www.theguardian.com/business/grogonomics/2026/feb/18/real-wages-fall-australia-workers-economy

The article has just gone up, allow a hour or so before it is brought out of from subscriberwall

#Economy #RBB #WageStagflation

Speculation and the old skeleton-in-the-cupboard the debunked employment-inflation nexus are two of the perennial reasons for RBA intervention. Both of these are features of the neoliberal economic system we all live under. Greg Jericho explains in his latest article in the Guardian why the RBA ought to wait before jumping on the cash rate lever.

“There is a kind of sickness in Australia’s coverage and discussion about the economy – an obsession that interest rates need to do something. Go up, go down – anything! Unemployment fell, interest rates must do something (apparently fewer people being out of a job is bad and needs to be cured). Oh no, inflation went up in one month – we need interest rates to do something!!

We see this as well with investors – or let’s be honest, speculators – who are determined that interest rates will go up next week.

Even before the December CPI figures were released, investors were betting (and that is all it is) that there was a 58% chance the Reserve Bank of Australia would increase rates on 3 February:”

Read more;
https://www.theguardian.com/business/grogonomics/2026/jan/28/australia-rba-interest-rates

#Finance #CashRates #InflationRate #CPI #AusPol #RBA #GregJericho

https://www.theguardian.com/business/grogonomics/2025/jun/26/super-tax-debate-highlights-everything-wrong-with-australias-media-and-economic-system

Another excellent piece from #GregJericho in #TheGuardian. We need more journalists who don't merely repeat the same propaganda for the rich.

@RaymondPierreL3

#GregJericho is probably the best thing in the #TheGuardian - well, tied for me with @firstdogonthemoon.