Drum piece: 40 Years Ago…

My Drum piece today looks back over the past 40 years (sort of).

I guess it is another one of the many “stop whining the economy is fine” pieces, but to be honest, it’s more keep whining, but at least realise you’re whining more about your own expectations than reality.

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I know inflation has mostly been beaten across the world – cf this via the OECD:

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But I think it is still pretty amazing – especially when you look back 90 years:

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In 2007 inflation was ignored by the final Costello budget, and by the time the ALP took office it was heading northward. Then the GFC hit:

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While growth was stronger in the 1990s, it is still striking how much lower interest rates are now for comparative levels of inflation

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We’re saving much like we did in the 1980s, but interest rates are much lower.

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For the first time since the 1960s the savings ratio is not following the inflation rate

And for the long perspective here GDP growth, Unemployment, and Inflation since 1966 (the earliest I can get monthly figures for unemployment)

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