Subscriber • Opinion

Will inflation trigger a double-dip recession?

By Adam Triggs
Updated January 26 2022 - 8:48pm, first published 6:25pm
Reserve Bank governor Philip Lowe at the standing committee on economics at Parliament House in February last year. Picture: Getty Images

"Taxation without legislation" is how economist Milton Friedman described inflation. Friedman saw inflation - when prices increase across the economy - as a tax by stealth, because it reduces the purchasing power of people's income while eroding the value of the government's debt. With yesterday's ABS data showing that inflation is on the rise in Australia, the concern today is even worse: will inflation derail the post-COVID recovery?

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