The speakers in the video are Chris Richardson, an economist, and Angus Taylor, the Minister for Finance. Richardson argues that the tax
cuts should be delayed because they will be inflationary. Taylor argues that the tax cuts should go ahead because they will help to
stimulate the economy.
A poll conducted by the show found that 61% of respondents believe that the tax cuts should not go ahead.
The video concludes with a discussion of the economic circumstances that would need to change in order for the government to change its
position on the tax cuts.
Reserve Bank Governor Michele Bullock has delivered a speech warning that 'persistent' domestic cost pressures could result in further
interest rate rises.
A question that has come up in class a few times, from some very enthusiastic and creative thinkers has been along the lines of:
"Sir, could The RBA just tell everyone that they will drastically reduce the cash rate in 6 months time, to try to get everyone to save
their money until then. Wouldn't this then bring inflation lower because consumption would surely drop. Could they try to manipulate and
leverage the "expectations" aspect of the transmission mechanism."