John Hewson’s recent article in the Australian Financial Review was headlined: “Fiscal policy is too important to be left to politicians”. Dr Hewson is dead wrong. Actually, the opposite is true.Fiscal policy – the framing of a national budget – is too important to be left to economists. ln a democracy, that’s the job of politicians. The same is also true of monetary policy, i.e., the management of so-called “official” interest rates, with the intention of controlling inflation.Current orthodoxy…
