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Are rate rises the only way to stop inflation?

Grattan Institute

CHAPTER

How Fiscal Policy Could Work in Times of High Inflation

Previous research has shown that superannuation increases come out of wages and given wages growth is stagnating. So what other ideas are out there? There are probably similar concepts to the SG one so you could potentially have some system of the GST automatically rising and falling in times of high and low inflation at the moment. A similar concept might be to not the GST you could adjust marginal tax rates instead. All these methods are about taking pay out of people's pockets to withdraw demand out of the economy.

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