@Bot4Sale
#Labor already has made some changes to the #RBA Board composition in the hope of bringing a more diverse set of competencies (not sure if it is working or not — haven’t paid much attention to that). As for financial levers, ‘printing’ money, setting the Cash rate, regulating banking and issuing Bonds is the extent of their economic toolkit. They have one main job and that it to manage inflation (though the arbitrary 2% to 3% set range is ludicrous in my view). There are other responsibilities which complete the monetary policy portfolio but they don’t have as major an impact on inflation. The problem is the RBA’s steadfast application of #NeoLiberal (aka neo-classical) economic thinking and the #NAIRU (non-accelerating inflation rate of unemployment - wikipedia). Modern Money Theory (#MMT) would do away with the separtion of economic responsibility and bring the RBB back into govt control.
Again, happy to have any economist jump in to correct my assumptions and understanding.
Le taux de chômage n'accélérant pas l’inflation. (2017)
https://www.informassue.tuxfamily.org/pages/democratie_election.php?art=inflation_chomage
les pouvoirs en place ne cherchent pas à réduire le #chômage, ils adaptent le taux de chômage pour maintenir un taux d'#inflation stable.
Illustration Miss Lilou
https://dessinsmisslilou.over-blog.com/2017/12/de-l-utilite-economique-et-sociale-du-chomeur.html
#NAIRU #Emploi #Économie #Social #Politique #Société #Salarié #Salaire #Travailleurs #Emploi
Pluralistic: Daily links from Cory Doctorow – No trackers, no ads. Black type, white background. Privacy policy: we don't collect or retain any data at all ever period. [Unofficial]Nov 7, 2025Pluralistic: The enshittification of labor (07 Nov 2025)
https://fed.brid.gy/r/https://pluralistic.net/2025/11/07/postwar-social-contract/
#BLS data released today. Last 6 months of #CPI data, as represented in the four most-common ways.
Some believe this month's CPI #inflation data is a sign that the Feds should lower rates. I haven't any idea why they think this.
The data is showing inflation remains at or above the inflation target with no signs of dropping *below* the target, with a steady unemployment rate. A person looking at #NAIRU would interpret this as a sign *not* to lower rates.
Money wages are set with regard both to internal labour efficiency (Stiglitz's "efficiency wages") and/or levels of #unionisation.
#Employment is determined ex ante by the firm's #expectations on demand for for its produce; then, money wages are negotiated for ex post.
Thus, there's neither an empirically consistent nor a theoretical link between #unemployment & #inflation, hence no #NAIRU (cf James Galbraith).
At least rhetorically, it looks as if the Employment White Paper may dump the #NAIRU definition of full employment. But sounds like there will be no real policy. $61 million (apparently over five years) is trivial
I've been making this point a lot recently, thinking it was original, but @delong posted it more than a year ago. The accelerationist model of inflation from which the NAIRU is derived works only for the 1970s.
Earlier inflations in the 1950s, and the current #inflation don't fit the model at all well, in either US or Australia.
Pre-NAIRU Keynesian understanding of the Phillips curve saw strong aggregate demand as driving both lower unemployment and higher inflation.
In #NAIRU model, transmission mechanism is from (low) unemployment to wages to prices.
Appointment of Bullock as RBA Governor reaffirms #Labor's commitment to #NAIRU model, inlcuding need for unemployment above NAIRU to keep inflation down.
Labor has abandoned Full Employment, or redefined it out of existence. #econtwitter
But #RMITFactlab declined to list Albanese's commitment to a Full Employment Summit and White Paper as a promise, let alone assess whether it has been broken.
@dellway
Work more Phil?
What is the current #NAIRU (Non-accelerating inflation rate of unemployment is a theoretical level of unemployment below which inflation would be expected to rise. - WP) Phil?
It is above the current unemployment rate isn't it Phil.
And you are trying to increase unemployment cause you think that will help prevent inflation hey Phil.
Throw more folk under the bus, for the good of your economy, and preach, "Work more".
#EatCake #AusPol #Unemployment #Economics
RaymondPierreL3
Informassue
Spin D'Accord
Jakob Steffen
John Quiggin
skua