A lot of Australians are hoping there might be an interest rate cut at the next Reserve Bank board meeting but they shouldn’t hold their breath.
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Sure, a good many of us don’t trust politicians – but surely politicians ought to trust politicians. History shows why they might one day need to overturn a Reserve Bank decision.
30 years ago, Labor Prime Minister Paul Keating adopted an ambitious official target for Australian unemployment. The Albanese government just passed up a historic opportunity to go even further.
Complaints that our recommendations would weaken the Reserve Bank governor ignore the fact that outsiders already control the board. We just want them do it better.
Australia has never clearly defined what “full employment” means. That’s about to change – and a more ambitious definition could help keep 150,000 or more Australians in work.
Just as we have the country’s smartest legal minds on the High Court and our best health practitioners setting vaccine policy, the review wants the best economists to set monetary policy.
