Oct 172007

Peter Hartcher hits the fiscal nail right on the head…

The reality is that the Prime Minister is seeking to bluster his way through a six-week election campaign with an inflationary growth plan. He is hoping fervently that the Reserve Bank will not raise rates in the middle of his campaign. And that it will mop up the inflationary consequences later, once he has been safely re-elected. Fortunately for the national interest, the central bank is now independent.

Clearly, when you’re desperate to hold onto power by whatever means necessary, you’ll throw out baby, bathwater, bath and tap set used to fill it. Damn the torpedos! Go for growth!

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