A recession is not inevitable in Australia – and certainly not necessary

‘Inflation is now growing faster than it has in 20 years and soon is expected to be as fast as it has been since the 1980s. And the common “cure” for rising inflation is higher interest rates,’ writes Greg Jericho. Photograph: William West/AFP/Getty Images

Unemployment is lower than it has been for nearly 50 years and yet the most common question I am asked is if we are going to have a recession.

The question is not without cause, and the response – as is often the case – is best addressed by the sage words of Reverend Lovejoy: “Short answer, yes with an if; long answer, no with a but.”