IMF clobbers Cullen

The IMF has joined the OECD, Treasury and the Reserve Bank in condemning Labour's inflationary spending. Cullen of course thinks he knows better than all of these organisations and continues to deny that his profligate spending is in any way, shape or form responsible for inflation.

The IMF advises the Government to move towards greater tax reductions and smaller expenditure increases to moderate any expansionary effect. They also caution that tax credits for activities such as R&D would represent a step away from the current orderly tax arrangements, and could create distortions.