The focus on the reserve bank’s recent errors meant that bigger issues of how to make monetary policy work more positively were overlooked.
The review of the Reserve Bank of Australia has missed the forest for the trees, and its conclusions are beside the point.
These policy settings helped to undermine the living standards of working Australians. They also helped to prop up fiscally irresponsible governments across the nation. Really, this was Australia’s major economic failing of the past decade. Does any of this rate a mention in the review’s final report?
Those who argue that interest rates were far too high before the pandemic miss the point that fiscal policy was, and is, far too loose.
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