George Washington University Professor Steven Hamilton discusses how last night’s federal budget could affect inflation.
“In the short term, we have an inflationary crisis which has been going on for two years and the RBA Thinks it’s going to go for another two years, we are right in the middle of it,” Professor Hamilton told Sky News Australia.
“If anything, the budget last night very obviously made that worse.
“We are pumping $44 billion, which is two per cent of GDP, into the economy at exactly the wrong time.”