Nice one from Ross Gittins yesterday:
How has this unexpected but wonderful turnaround been achieved? Largely by assumption.
Three in particular. First, that despite four or five years of unprecedented weakness in wage growth, wages will immediately begin a steady return to growth of 3.5 per cent a year, without inflation doing anything more than returning to the centre of its target, 2.5 per cent. This does wonders for tax receipts.
