A tax cut would be a great way to stimulate supply in the broader economy and would be the best antidote to inflationary pressures.

The RBA should stop regulating interest rates and leave the pricing of credit to a free market. If the RBA has any manadate it is to ensure that the value of our money remains stable. Its job should not entail messing about with the price of credit.

In the Bullionist debate of 1810 the original Henry Thorton argued that to avoid inflation the convertibility of notes into gold should be restored. Its a pity that those that have borrowed his name don't seem to share his views on inflation. I think I could support the monetary views held by the Henry Thorton of 1810. I am not so certain about the Henry Thorton of 2005

Henry, I love your articles. So the RBA chairman was rolled.. I think you are right about further rate increases and they could come sooner than later if Greenspan goes for a 0.5% increase. If that scenario happens then the RBA can blame the US not his employer for any rate increase.

In response to comments by Terje (above) - hear,hear!