The Reserve Bank released a new issue of the Bulletin yesterday headed “Evaluating Monetary Policy”. Bulletins carry the imprimatur of the Bank itself, and in this case the key messages are conveyed in quotes from Assistant Governor John McDermott in the accompanying press release. I’m sure Graeme Wheeler himself will have gone through this quite carefully before agreeing to its release, and we can assume that the article speaks for the Governor.
In principle, the article isn’t a bad idea. It is worth having an accessible summary reference that outlines the key legal provisions that govern the Bank’s accountability for monetary policy, and which articulates some of the real challenges in scrutinising and holding the Bank to account in the approach to conducting monetary policy (“flexible inflation targeting”) that is now pretty widespread. As I’ve pointed out previously, the Act was written for a simpler (not very realistic)…
View original post 2,854 more words
Utopia, you are standing in it! 
Recent Comments