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Will inflation trigger a double-dip recession?

Adam Triggs
By Adam Triggs
Updated June 13 2022 - 4:21pm, first published January 26 2022 - 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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Adam Triggs

Adam Triggs

Columnist

Adam Triggs is a director within Accenture Strategy, a visiting fellow at the Crawford School at the Australian National University, a non-resident fellow at the Brookings Institution, and a fellow at Macquarie University's E61 institute. He writes fortnightly for ACM.