Reserve Bank of Australia economists Neyavan Suthaharan and Joanna Bleakley have released a research paper hosing down claims that Australia nor the world could return to a 1970s-style wage-price inflationary spiral.
They argue that central banks are now more focused on fighting inflation by increasing interest rates rather than reducing them, while workers have less bargaining power and there are fewer automatic inflation-linked pay rises compared with the 1970s.
Below are key extracts from the paper:
