Below is an extract of a post published on Guardian titled "Turning the economic tide: could a radical monetary theory fix Australia's woes?"
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Via: Guardian
Bill Mitchell, the leading Australian proponent of modern monetary theory, argues that governments should abandon their obsession with budget surpluses Another week and another glut of evidence that the Australian economy is flatlining. Growth figures showed that households have stopped spending and that the economy is being propped up by a few government projects. The next day, retail sales growth came in at exactly 0%, showing that consumers have taken the Coalition’s tax cuts and used them to pay off debt. But as Josh Frydenberg rebuffs the Reserve Bank’s calls for huge new federal spending and instead trumpets the possibility of returning Australia Pty Ltd to surplus, it seems increasingly likely the denizens of Martin Place will cut the cash rate again in February to kickstart the economy. They talk of surplus as if it’s the norm – but it isn’t Related: The story behind the GDP data? The incredible shrinking private sector | Greg Jericho Related: Weak GDP no surprise as economists declare ‘household recession’ Related: When you get right down to the fundamentals, the economy is looking pretty crook | Greg Jericho Continue reading…
