A greener economy won’t lead to 1970s-style inflation
The transition to a greener economy through changes in government climate policy, technology, investment, and consumer preferences will fuel huge demand for key raw materials and may create inflationary threats in the economy.
However, given the decreasing role of commodities in determining inflation over the past few decades, the expected supply response to currently elevated commodity prices, and generally well anchored inflation expectations, a shift to persistently higher inflation via this channel is unlikely in the near-term.
What you will learn:
- Pandemic supply constraints and financial speculation are also at play
- Over the next few years, green commodities are also likely to reflect a fraction of commodity consumption
- Also, several factors that have led commodities to play a smaller role in the economy
Housing supply front and centre for policy makers
The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government's announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns achieved.Find Out More
BoJ will continue effective zero interest rate policy anyway in Japan
The Bank of Japan (BoJ) maintained the policy rates at its September meeting, following a tweak in its yield curve control policy in July. Although this decision was widely expected, the markets are starting to speculate policy changes within the coming quarters, especially after the BoJ governor's recent interview.Find Out More