Jan 25, 2023
I find it quite startling that no one in this country questions the prevailing theory that the best way – indeed the only way – to fight inflation is to increase everyone’s mortgage rates.
Everyone – including economists, politicians, journalists and the general public – seems to blindly accept, without question, that constantly lifting interest rates is the thing to do when inflation is high.
I think there’s a strong case that the conventional wisdom – if indeed it is wisdom – is questionable in the current circumstances and that Australian families are being slugged with massively higher dwelling costs for no good reason.
There are other, better, ways to deal with the key components of the current high inflation rate and that higher interest rates are not having the forecast effect.