Article: Fed: RBA's rates strategy could lead to disaster: Stiglitz


AAP General News (Australia)
05-21-2008
Fed: RBA's rates strategy could lead to disaster: Stiglitz

CANBERRA, May 21 AAP - The Reserve Bank of Australia's strategy of raising interest
rates to battle inflation is potentially dangerous, a Nobel Prize-winning US economist
has warned.

Columbia University Professor Joseph Stiglitz, a former chief economist of the World
Bank, says countries that use inflation targeting are likely to get themselves into strife.

"Most countries today face imported inflation," Prof Stiglitz, who won the Nobel Prize
for economics in 2001, told ABC Radio.

"To think that there is anything Australia can do to dampen global food inflation,
or global energy ...

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