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