Are interest rates the only way to control inflation?
Reserve Bank Governor Philip Lowe is painted by many as public enemy number one because of interest rate hikes but is that the only tool at the RBA's and federal government's disposal in the fight against inflation?
Australia has fought back against rampant inflation before and the RBA is determined to do so again, using its preferred "blunt instrument". (Image source: Shutterstock.com)
Tackling inflation is one of the most persistent and challenging tasks facing any economy.
Australia, like most advanced economies around the world, is again wrestling with high inflation, which recently rose to a new 32-year high of 7.8 per cent.
While that is high – the Reserve Bank of Australia (RBA) aims to keep it within the 2 to 3 per cent range – spare a thought for the wage earners of 1951 who were contending with Australia’s highest ev…
