Australian interest rates

Should we lower the lunatic RBA’s inflation target?

David Llewellyn-Smith
Tuesday, 30 April 2019
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The state of debate in this country is appalling. The latest? The lunatic RBA has misread the economy for seven years, failed to deliver its inflation and employment mandate, helped trash five straight prime ministers by embedding a permanent income recession and what is the answer? Change the goal posts to protect it. Via the AFR:

…Former Reserve Bank of Australia board member Warwick McKibbin has already called for the RBA to move away from the inflation target band, while local economists BetaShares’ David Bassanese and UTS’s Warren Hogan have also suggested the target should be adjusted.

…AMP chief economist Shane Oliver said the current situation was the inverse of 2008 when inflation was too high and economists called for change to the band then.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.