The government has spent all of today prosecuting the implausible argument that high interest rates are a sign of good economic management. Of course, it’s all the more audacious given the government’s pledge in 2004 to keep interest rates at “record lows.”

In fact, they promised the following:

And here is treasurer Peter Costello today:

Mr Costello says [the interest rates rise] is proof of good economic management, which voters should ensure continues.

“When you have low unemployment there will always be more pressure on inflation,” he said.

“You would always expect interest rates to be higher during a period of low unemployment than a recession.

So why did the government promise to increase employment, keep inflation under control and interest rates at record lows, when they now reckon that more jobs causes higher inflation which, in turn, causes higher interest rates?

They’re just making this up as they go along, aren’t they?