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Will Jim Chalmers' budget drive up inflation? Not likely – and here's why

By Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

The proposition that cutting prices will stoke inflation is a hard one to get your head around, even if you are an economist.

Yet it has been seriously put forward as a critique of this month’s budget; the one in which Treasurer Jim Chalmers announced measures that will take the edge off electricity and gas prices, the price of prescriptions and some visits to the doctor,…

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