The political economy of interest rates
Posted by ~Ray @ 2008-11-19 12:12:20
As no one else seems to be asking this question. I will. Given that (a) every person and their dog expects Labor to win government at the end of the month and (b) the RBA sets interest rate policy considering the macroeconomic policy position of the government a few months or more out then the question is: would the current rise have been higher or lower if we had expected the Coalition to retain office? Moreover around this shouldn’t it go to Swan?
[Update: Some people think alike asked the same question.]
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