Keating’s RBA demolition is Morrison’s chance to bone Deflation Phil

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Via the ABC:

Paul Keating has accused the Reserve Bank of conservatism, laziness and failing to do what is necessary to head off the worst of the coronavirus-induced economic crisis.

In a letter distributed to the media, the former prime minister said the RBA should be funding the “mountainous sums” of government spending required to support the corona-ravaged economy, and it should not rule out the policy option of buying government bonds directly from Treasury to do so.

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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.