I'd been wondering the extent to which inflation was supply vs demand driven. And with so many external factors in play, I'd assumed is was predominantly supply side.
I've also been trying to get my head around the extent to which the RBA would end their current tightening if the drivers of inflation were to switch to predominantly supply side. My basic grasp of economics would say that increasing rates would have an effect on exchange rates, which might continue to help with price pressure on our imports. What are your thoughts on this?
This is a good piece, thank you.
I'd been wondering the extent to which inflation was supply vs demand driven. And with so many external factors in play, I'd assumed is was predominantly supply side.
I've also been trying to get my head around the extent to which the RBA would end their current tightening if the drivers of inflation were to switch to predominantly supply side. My basic grasp of economics would say that increasing rates would have an effect on exchange rates, which might continue to help with price pressure on our imports. What are your thoughts on this?