The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Wednesday, June 22, 2011

Will inflation accelerate or decelerate?

My very smart mate Ricardian Ambivalence has just published this excellent little note looking at the probability of inflation accelerating or decelerating from its current pace. He conditions this against changes in the unemployment rate, and the results are not surprising. In short, if the RBA wants to slow the pace of inflation, it has to increase the unemployment rate. See the analysis here.
at 7:01 AM