The Wire

The were satisfied looks on the faces of many economists around the country today as the news came in that inflation was down to a decade low 1.5 per cent – just as they’d predicted. The figures seem to firm up the belief that we’ve hit the bottom of the economic downturn, and things may be looking up. But not everybody agrees that the government and the reserve bank have got it right when it comes to their handling of the global economic crisis. Associate Professor of Finance and Economics from the University of Western Sydney, Steve Keen, is one of the nay-sayers. He says that government stimulus packages and low interest rates should see inflation rising – and the fact that it’s not is a cause for concern.