Nobel prize-winning economist Joseph Stiglitz calls for windfall profits tax in Australia

Stiglitz made the comments to reporters during a tour of Australia after personally lobbying the treasurer, Jim Chalmers, to introduce the tax and warning that excessive interest rate rises could push Europe, the US, and then Australia into recession.

At a press conference on Monday the treasurer, Jim Chalmers, again ruled out a windfall profits tax despite a new report from the progressive thinktank Australia Institute finding rising profits are helping to drive inflation.

The Organisation for Economic Co-operation and Development, headed by former finance minister Mathias Cormann, has also called on Australia to adopt a carbon price despite Cormann spending years in government fighting against the idea.

He warned that high interest rates made it harder for businesses to invest.