MP Shows Keen Grasp of Economics
I'm not sure which is sillier, reporting Peter Costello's remarks about inflation or the remarks themselves. Very good, Peter, you understand the basic principles. That must by why you're in charge of the budget. On the other hand, while he's warning us good and services prices will rise in response to the increasing price of petrol, he seems to believe this is different than businesses raising those prices as a response, which must be controlled lest we face a "wave of inflation." I guess he's relying on those industrial relations laws to keep wages from being part of the cycle. That'll fix it.