this post was submitted on 25 Jun 2023
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It just shows the economic theory we have relied on for years is being flipped on its head. RBA is technically correct in its assessment but we have seen over the last 2 years the theory has not been working.

Increased Rates > Unemployment goes down > House prices go up > Wages still stable.

Think its time many of us economists reassess how the market is going to function in the next 5-10 years.