Why we may not be done with inflation
Interest rates have come down in Canada and the eurozone. When will Australia follow suit?
Topic
Wages
A collection of 3 issues
Why real wages had to fall
Real wages in Australia have stagnated because the pandemic made us all poorer; a lack of wage growth just reflects that reality. If we push wages further above productivity, we risk disemployment, a wage-price spiral, and even a painful recession.
What Australia's per capita recession really means
Australia's national accounts were released last week and confirmed that our per capita recession – defined as two consecutive quarterly contractions – didn't just continue into the December quarter, but deepened: on a per person basis, our economy is now a full 1% smaller than where it was