Recessionberg baffled by RBA spending call

Via The UnAustralian:

The Morrison government is ­increasingly frustrated with ­Reserve Bank governor Philip Lowe’s calls for it to spend more to lift the ­nation’s flagging productivity, after a confidential cabinet briefing from the RBA boss on Monday left ministers exasperated by an absence of detailed policy ideas.

Dr Lowe in a speech on ­Wednesday again exhorted the ­Coalition to do more to foster business spending as he highlighted a “troubling decline in productivity growth”, despite “fantastic” economic fundamentals. “While the reasons for this are complex, it is hard to escape the conclusion that higher levels of investment spending would promote productivity growth and our collective living standards,” he said.

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