Fears of inflation, coupled with political imperatives to provide relief to households, leads governments to argue that particular budgetary expenditures, such as the Energy Bill Relief rebate are not inflationary (as they bring the CPI down). That would be magical, but this fairytale mistakes the measure (CPI) for the thing (inflation), as can be seen by tracing the actual impact of the rebate at the household and macroeconomic level.
The post Energy Bill Relief and the Inflation Dragon: A Fairy Tale? appeared first on Greg Ogle's After Dinner Political Economy.





