RBA’s Phil Lowe dismisses MMT

Advertisement

RBA Governor Phil Lowe has given an address to the Anika Foundation, where he flagged a turnaround in the Australian labour market and endorsed using fiscal policy to smooth out the pandemic shock. However, he attacked the idea of monetising debt via MMT:

The Labour Market

I wanted to start with the labour market because for many people, the economic costs of the pandemic really hit home when they, or somebody they know, lost their job or their hours were cut.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.