Tulip departs RBA to praise RBNZ

Via Bloomie comes the eponymous Peter Tulip, ex-RBA:

“The evidence suggests that negative interest rates work,” said Tulip, now chief economist at the Centre for Independent Studies — a think tank in Sydney. “Why is the experience of other countries that have successfully used negative interest rates, why is that inapplicable to Australia?”

Reserve Bank of Australia chief Philip Lowe, in testimony Friday, pushed back against the suggestion that a year of negative rates might be better than a decade of the cash rate at zero. The governor said he hadn’t ruled out going negative, but reiterated that it was extremely unlikely.

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