Economists Just Gonna Ignore The Fact That Inflation Went Down Without Forcing 100’s Of 1000’s People To Lose Their Jobs

WENDELL HUSSEY | Cadet | CONTACT

The bright minds at the Reserve Bank of Australia have today confirmed to The Advocate that it’s full steam ahead.

With the magic number of inflation finally doing something they want it to, the RBA has strongly hinted that it plans to lower the cash rate at its next meeting.

A double cut of .5% has been floated by some experts, with the RBA apparently happy with the state of the economy.

This follows a big few years of raising interest rates to try and curb inflation, that was mostly driven by corporate profiteering and international factors like the global energy pressure from the war in Ukraine.

As part of trying to curb ‘inflation,’ the omniscient beings at the Reserve Bank decided to keep raising rates until they hit certain metrics.

One of those metrics is hitting a target unemployment rate, or the The Non-Accelerating Inflation Rate of Unemployment (NAIRU).

As part of some theory that someone came up with back in the day, the RBA operates under the premise that some times hundreds of thousands of people need to lose their jobs if inflation goes up.

The current rate in Australia is between 4.5% to 5%.

The current unemployment rate is 4.1% and has hovered around 4% since the remnants of the flu formally known as the Pangolins Curse settled down.

However, inflation has now started slowing without a 140,000ish people losing their jobs to hit a target rate that apparently helps hit another target rate.

Which is something a number of economists at the RBA have confirmed they won’t be paying much attention to.

“Hahahaha, yeah maybe we’ll think about it next time we have another inflationary episode, but for now, we are just pretending that we did it,” said a spokesperson for the RBA.

No more to come.