In his speech last night to the American Australian Association luncheon, RBA Governor, Glenn Stevens, called for help from policy makers in managing the macro-economy, noting the clear short-comings of monetary policy [my emphasis]:
To this point, the balance that the Reserve Bank Board has struck has seen the policy rate held at what would once have been seen as extraordinarily low levels for quite a while now. The Board has, moreover, clearly signalled a willingness to lower it even further, should that be helpful in securing sustainable economic growth. The Board has been proceeding with a degree of caution that is appropriate in the circumstances. It also has, I would say, a realistic assessment of how much monetary policy can be expected to achieve in supporting the adjustment the economy needs to make.
