Why the RBA has nothing to fear from a burst of Taylor Swift inflation

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OPINION: The pop star’s concerts have a knack of setting off mini waves of inflation. But come February when she tours Australia, the economy might need a “TSwift Lift”.

It’s a tense week in the Chanticleer household. Like millions of other Australians, Mrs Chanticleer is desperate to get her hands on tickets to one of Taylor Swift’s Melbourne concerts.

Chanticleer doesn’t know if many inside the Martin Place headquarters of the Reserve Bank will be joining the ticket hunt, but we hope the bank’s economists pay more than a little attention to this burst of Taylor Swift fever that will break out this week, and again when the tour arrives next February.

Naturally, huge demand and limited supply creates an inflationary impulse that another research firm called CreditSights has dubbed the “TSwift Lift”. It found that when the tour hit Nashville recently, revenue per hotel room in the city for the three nights Swift was in town was double the same time in the previous year, when the place wasn’t full of Swifties.This phenomenon isn’t just restricted to Swift.

 

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