Monetary policy

Australia risks "sticky" inflation if real wages start to outpace productivity, requiring higher rates longer and job losses as businesses start to adjust on the employment rather than not wage margin. Continued fiscal deficits also fan future inflation risks.

My recent FOI showed that the RBA Board was warned about the risks of QE but appeared to ignore those concerns, ultimately leading to huge losses with minimal benefits. The fiscal cost alone looks to be well over $50 billion, or more than $5,500 per household – a massive policy blunder.