While Ben Bernanke knows how to talk his currency into the ground, our own crop of central bankers have no idea. Guy Debelle appeared this arvo at a conference and, as usual, palavered all around the topic. From the SMH:
Debelle says the Reserve Bank would “certainly” welcome moves by the US to return to traditional monetary policy tools – because that would mean US economic activity was improving.
“This is a good thing. It’s unambiguously a good thing,” Mr Debelle said.
“The alternative is worse … It’s a hell of a lot worse that the consequences associated with an exit [from unconventional monetary policy].”
He says the dollar will likely remain higher as long as the US continues with its $US85 billion dollar bond buying program, but he welcomes the day when that program runs down.
It’s a good thing except it isn’t happening yet and may never happen. Why not take control of your destiny instead. At least threaten that you’re thinking about it.
I await Captain Glenn tomorrow and his Thirty Years of Floating speech. Surely some kind of jawboning neutron bomb is planned.
