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Is federal government spending really to blame for higher inflation? It’s not clear cut

By Stephen Bartos, Professor of Economics, University of Canberra
John Hawkins, Head, Canberra School of Government, University of Canberra
There has been a spate of articles and commentary in recent days calling on the Australian government to reduce spending.

Those calling for government cuts – mostly long-time advocates of smaller government – claim this would lower inflation, and as a consequence reduce interest rates.


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