Capt’ Glenn gets another 3 years


Wayne Swan has announced that Glenn Stevens will be reappointed for another 3 year term as RBA chief. More to come…

David Llewellyn-Smith
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  1. Swanny is daring Hockey to revoke Capt’ Glenn’s tenure. Joe has said in the past that the Coalition reserves the right to change key appointments if they are made without ‘consultation’. It’s hard to see how the Coalition could reasonably oppose this.

  2. Excellent. Glenn gets to deal with the mining bust the RBA promised us would never happen.

    • But if people’s house prices go up enough, they won’t even notice the mining bust. Will they? People will be too busy crowing about their shrewd housing investments and capital gains at BBQs that they won’t mind that the bottom has dropped out of the mining industry. At least, that’s the plan, isn’t it?

  3. You never know… perhaps with fresh tenure the RBA will start to be more honest about the limitations on monetary policy and take steps to give a more ‘honest’ central bank.

    There’s always hope – and it can’t hurt the reputation. Look at the reputation of all the other central bankers that have sat back and allowed loose monetary policy to hollow out their middle class wealth.

  4. A little surprised that the Governor would want to stick around for another 3 years but possibly he reckons the end game will take more than 3 years to play out.

    After all we are fast approaching the end of the era where ‘public’ balance sheets can be kept tidy by using institutions like the RBA to apply loose monetary policy and use household balance sheets to ‘stimulate’ economic activity.

    Unless the RBA seriously intends to pump household debt up to a yet higher plateau (new normal in spruiker speak), the likelihood is that they will let it track income growth.

    It is highly unlikely that the RBA would do anything to actually encourage deleveraging over any time frame as that would risking pinning the blame on the RBA for causing economic pain – however justified it may be.

    The trouble is that our economic vitality over the last 15-20 years has depended on the growth of household debt and if it just tracks income growth that will probably not be enough to get the ‘animal spirits’ working like they did in the good old days of Howard and Costello.

    So what is left?

    The good old public balance sheet?

    Well that seems unlikely as fiscal rectitude appears the one sound bite permanently lodged in the brains of our pollies on both sides (thank goodness too as they are hardly an austere bunch at the best of times).

    With monetary policy all but tapped out, fiscal virility about as popular as VD it is hard to see what rabbit Governor Glen plans to pluck from his hat during the next 3 years.

    Maybe his faith in ZIRP springs eternal.

    He would not be the first amongst the high priests of Central Bankerdom.

  5. Nick1970MEMBER

    Reminds me of when the AFL went to a final eight finals series. I think the term at the time was ‘rewarding mediocrity’.