The root cause of government debt today was the over indulgence of the Morrison government in racking up a trillion dollars of spending, as they lined the pockets of the mega rich down at the big end of town, Australia now has nothing to show for it, except a Noalition debt for as far as the eye can see. Fortunately Labor has not gone down the same path, with economists describing the recent Labor budget as prudent and non-inflationary, delivering a surplus.

The Noalition are always long on rhetoric and short on delivery. I think the Australian people have woke to the fact they are a do as I say mob, but not a do as I do bunch of clowns. I had a terrible thought, Dud Dutton and his cronies could one day be running the country, what a circus that would be!

The $trillion of Labor debt has been vastly added to in the last year by the Labor/gangreen spending fueling debt and inflation.

Inflation was just starting after covid and Labor took charge. It was Labor's responsibility to control it, and they did bugger all to curb inflation and even spent more, which is why Aus is in the trouble it is now.

After 13 months of government Labor has no one but itself to blame (other than the rantings of the village idiot) Labor is responsible for:

High inflation,
High power prices,
Higher cost of living (wages rising less than inflation,
High interest on Mortgages,
Higher risk of power outages,
higher risk of racist constitution,
etc.

mhaze,
Take another look at the ABS link you supplied, and you'll see that after negative inflation in lockdown, there was indeed a surge in inflation when the economy opened up. But that's to be expected, for the obvious reason you've identified. 'Twas hardly "out of control" as it had started falling before the really big surge in inflation caused by the war.

Contrary to what you claim, the results are almost entirely consistent with MMT. The single exception is that MMT predicts the inflationary effects would happen in real time; in reality lockdown caused a time delay by limiting people's opportunities to spend money.

Your question about why inflation hasn't fallen again is a good one. I think the answer is a combination of four things:
• though some commodity prices have fallen again, others have continued to rise
• profits are higher
• increased uncertainty about costs means businesses are unwilling to cut their margins
• higher interest rates have increased business costs.

But what it clearly isn't is rapidly rising wages. Phil Lowe has constantly been predicting that, and he's constantly been wrong. That's why he must go!

The "only tool available" argument is just wrong. Inflation would have fallen even if he'd done nothing. And fiscal policy is just as available now as it was in years gone by. BTW I think I said governments CAN and SHOULD (rather than would) tighten fiscal policy if inflation occurs. And to some extent (insufficient IMO) they are: AIUI this is the first financial year since the GFC that the Federal government's running a surplus despite governments on both sides trying to take credit for surpluses that never eventuated.

No matter how much you try to liken inflation to cancer, it never will be.
Corruption is cancer.
Inflation is more akin to diabetes.

Stop whining & just thank your lucky stars COVID didn't happen during a Labor Govt.

According to the table in Hebrew author Steven Stilbiger's book "Ten Day MBA"- Chapter Economics...

Communists believe Marxist economics I suppose from "Das Kapital".

Leftists and "John Maynard Keynes" believe that unemployment is the biggest evil

Rightists and "Milton Friedman" believe that inflation is the biggest evil.

Not sure what type of economics Aboriginal's follow- perhaps Trotsky economics.

Now the Aboriginals are Trotskyists! This guys too much.

When Captain Cook landed they said; "Good'day Leon, glad you could pop in!"