Didn't John Howard run his monetary policy, in Opposition, by looking through his rear view mirror? MickS

At least he was looking...

My money's still on Australia's property bubble to burst, hence deflation, Henry, before a hyperinflation sets in well down the track once "Quantitive Easing" shows up for canard it is.

And, in a price drop, of course, ratcheting interest rates up becomes self-defeating.

But, yes, I agree with you that RBA interest rates settings must be set with a much broader vision, Henry, as I suggested back in 2005:- http://www.theage.com.au/news/Opinion/Resource-rents-hold-the-property-key/2005/06/14/1118645806738.html

... and in http://www.theage.com.au/business/economic-deja-vu-as-powers-that-be-play-same-old-tune-20081119-6bn1.html

- BK

see http://secretofoz.com The Global reserve banks caused this deprssion like all the others.The big end of town should never have been bailed out.There is no such thing as too big to fail.The US is in greater trouble because of the Private Federal Reserve policies.

They are creating the same problems of the 1930's depression.

I love the way economists analyse their dog's breakfast as if it was a science!
Of course they need a show of rigour to rationalise the fact that their goggle-eyed abstractions (uncannily inaccurate) blindly scry the whole spectrum of human excess, banality and wretchedness on the ground. Economics has hit the mother-load of lies, indifference and euphemism---'creative destruction' for instance.

The first prerequisite of economics=myopia.