Always surprised when people suggest contractionary changes in the SG or other tax rates would be more popular than changes in interest rates. Also worth recalling the SG rate is already increasing every year and therefore a significant drag on take-home pay.
Assuming inflation is primarily demand-pull, you are correct.
Also note, the problem is not the economics of it - not the macroeconomics - the aggregates
but the politics - the political economy of it - how to make it happen with the least harm.
These things are interdependent but the lines between the two are too often blurred.
Always surprised when people suggest contractionary changes in the SG or other tax rates would be more popular than changes in interest rates. Also worth recalling the SG rate is already increasing every year and therefore a significant drag on take-home pay.
Yup. Though if the offset is less than 100% it will add to the cost of labour.