General Climbing Discussion

Topic	Date	User
Welfare and climbing	17-Dec-2008 At 7:43:20 AM	rod
Message
cutting reserve bank interest rates and boosting fiscal spending in intended to maintain output with the intent that the dire effects of an asset and price contraction amidst a heavily indebted economy are mitigated...opting for the opposite may be appropriate for a heavily saving economy. i think its more a behavioural science: the reserve bank may cut rates but that doesn't mean it reaches the end target people they were hoping it would and the unintended effect of fiscal spend may be that people save more in anticipation of later tax increases.

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