A question for the freshly smacked Reserve Bank board on Tuesday: Is there a better example of the deficiencies of monetary policy than the bank prolonging higher rent inflation (the second biggest expenditure class in the CPI) by lifting rates to theoretically reduce inflation?
And while asking the RBA questions: Having repeatedly demonstrated the bank has no idea what the non-accelerating inflation rate of unemployment (NAIRU) might be, do you at least feel squeamish about explicitly seeking to increase unemployment to hit your latest NAIRU guess?
