by Richard Denniss
[Originally published on Guardian Australia, 30 October 2019]
The Government’s top two economic advisers are in stark disagreement about something straight forward: whether the Australian economy would benefit from a bigger budget deficit or not.
The Governor of the Reserve Bank says he is running out of room to cut interest rates any more, and that some government spending would help stimulate the economy. The Secretary of Treasury says no such stimulus is necessary. Who to believe?