Prime Minister Anthony Albanese dismissed claims that government spending is driving inflation, accusing the opposition of talking Australia down.
Opposition deputy leader Sussan Ley returned to the dispatch box and asked whether economists who argue government spending fuels inflation were “all wrong”.
Albanese rejected the premise, accusing the opposition of undermining confidence in the Australian economy.
He repeated arguments made earlier in the week by himself and Treasurer Jim Chalmers, pointing to positive assessments from international institutions.
Albanese cited comments from the International Monetary Fund and the Organisation for Economic Co-operation and Development.
He quoted the IMF’s November assessment stating Australia was managing a “soft landing” amid global uncertainty and that the Commonwealth’s fiscal strategy had been effective during the pandemic period.
Albanese also said private sector demand had been growing faster than expected.
