Economic loons: Unemployment must rise to tame inflation

Friday 2 September 2022

Stephen Koukoulas (‘The Kouk’) Tweeted yesterday that Australia’s unemployment rate must rise to 4% for inflation to return to target:

His Tweet was immediately supported by former RBA talking head Peter Tulip; although he claimed 4.5% unemployment was required:

Dr Cameron Murray questioned their statements, asking why making unemployment rise would solve largely supply-side inflation:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.