The proposed caps on domestic prices of thermal coal and natural gas are unlikely to be a major drag on mining investment because the bulk of coal and gas production is exported. And by helping to reduce inflation, they will allow the RBA to keep monetary policy looser than otherwise. That will result in a smaller rise in unemployment and limit any damage from labour market scarring.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services