Now that Australia has printed its first decent inflation number in ten years, the hysteria for rate hikes has built to a crescendo. I now hope that the RBA hikes in May just to finish off the appalling Morrison Government.
Alas, that may be the price we have to pay because in panicking about inflation and heading into a tightening cycle all the RBA is going to achieve is to push Australia into the post-Spanish Flu 192o crash rerun that is playing out globally.
The Depression of 1920–1921 was a sharp deflationary recession in the United States, United Kingdom and other countries, beginning 14 months after the end of World War I. It lasted from January 1920 to July 1921.[1] The extent of the deflation was not only large, but large relative to the accompanying decline in real product.[2]
