RBA Governor Says `Low Inflation Isn't That Bad'

The transcript discusses global economic factors affecting inflation and wages, highlighting structural changes in the wage process, the impact of globalization and technology, and the flexibility of labor supply. It explores policy implications, suggesting that the current economic system is less prone to inflation. The speaker reflects on different approaches to managing inflation, emphasizing the importance of patience and adjusting wage expectations over increased monetary stimulus.

What economic condition has Australia maintained for the last decade?

• Negative interest rates

• Quantitative easing

• Positive interest rates

• High inflation

What is one of the global factors affecting the wage process according to the speaker?

• Rising commodity prices

• Decreased competition

• Globalization and technology

• Increased government spending

How has the labor supply in many countries become more flexible?

• More manufacturing jobs

• Increased full-time employment

• Decreased participation rates

• Rising participation of older people and women

What is one approach the speaker mentions for dealing with low inflation?

• Reducing government debt

• Cutting public spending

• Increasing taxes

• Accepting low inflation for a while

What does the speaker suggest as a strategy to address low inflation?

• Implementing austerity measures

• Reducing labor supply

• Increasing interest rates

• Lifting wage expectations