"<em>So, if you are struggling with higher interest rates or worried about higher unemployment, remember that this is the price we have to pay to restore the “credibility” of the Reserve Bank." I think Quiggin is not a good faith actor here. The RBA are full of self serving elites he implies. He could join MAGA. </em> <em>I would be very willing to see an econometric analysis that suggests a different target than 2-3%. The fact that Quiggin does not point to one, bearing in mind his day job, suggest that no such research exists! He seems to blame Roger Douglas. In a shitty little country one station past the arse-end-of-the-world. And the rest of the world dutifully followed according to JQ.</em> <em>Sorry to be so critical. I don't think it is worth reposting his nonsense. He has a successful blog and doesn't need further boosting.</em> <em>The main point surely is not the target. It is that interest rates are a completely illegitimate level to pull. Turning up the GST would be so much better. Why does he not even mention that? Because it is a flat tax and he is an ideolog. Whereas interest rates punish aspirational RE investors. He really is quite transparent.</em>