Dr Eric Crampton writes:
The Crown Accounts are in better shape than had been expected when the Budget was set.
That’s the good news.
But the Reserve Bank this week warned, while increasing interest rates by 0.5 percentage points, that “overall spending continues to outstrip the capacity to supply goods and services.”
The deficit still stands at $9.7 billion dollars. Core crown expenses, in 2022, were some $17 billion higher than they were in 2020 and 2021, when lockdowns and wage subsidies warranted substantial fiscal support.
Fiscal policy continues to provide too much stimulus in an overheated economy.
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Utopia, you are standing in it! 
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