C20th

C20th





Austrian school, meet the Australian economy





These theoretical and empirical problems come together in the record expansion of the Australian economy since 1991. That is, Australia has not had an economic recession (in the sense of two quarters of [negative] economic growth) since 1991. It still has a business cycle, just a very flat one.

and income expectations that the Australian economy has not been shocked enough off its growth path since RBA a 2-3%pa inflation rate on average over the business cycle ? What is more plausible--that the Reserve Bank of Australia (RBA) got its policy interest rate essentially correct for 23 years straight, so that Australian entrepreneurs got their capital projects (on balance) continually right? Or that the RBA sufficiently anchored inflationincome expectations that the Australian economy has not been shocked enough off its growth path since RBA introduced its policy of aiming for





Surely, the second option is much more plausible.



