Monetary Policy Mistakes and Remedies: An Assessment Following the RBA Review-Reference-Cited by-同舟云学术

Monetary Policy Mistakes and Remedies: An Assessment Following the RBA Review

Published:2023-09 Issue:3 Volume:56 Page:273-287
ISSN:0004-9018
Container-title:Australian Economic Review
language:en
Short-container-title:Australian Economic Review

Author:

Garnaut Ross¹,Vines David²³⁴

Affiliation:

1. The University of Melbourne and The Australian National University

2. Economics Department and Oxford Martin School University of Oxford

3. Balliol College Oxford

4. Centre for Economic Policy Research

Abstract

AbstractThis article responds to the Review of the Reserve Bank of Australia (RBA), which was released on 20 April 2023. We describe the underperformance of the Australian economy over the past decade, and identify the contribution of RBA mistakes. We suggest remedies that would improve prospects for low inflation and unemployment. Returning to general prosperity requires better coordination of monetary, fiscal and macro‐prudential policy and of these with other aspects of economic policy‐making. We conclude that while the RBA Review makes some valuable suggestions about structure and process at the RBA, it provides little guidance on the content of policy.

Publisher

Wiley

Subject

Economics and Econometrics

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/1467-8462.12528

Reference22 articles.

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3. Bishop J.andGreenland E.2021 ‘Is the Phillips curve still a curve? Evidence from the regions’ Reserve Bank of Australia Research Discussion Paper no. RDP 2021‐09 Reserve Bank of Australia Sydney viewed 2 September 2023 .

4. Fiscal Policy under Low Interest Rates

5. Blanchard O.andBernanke B.2023 ‘What caused the U.S. pandemic‐era inflation?’ paper prepared for Conference—The Fed: Lessons learned from the past three years the Hutchins Center on Fiscal & Monetary Policy May 23 2023 Brookings Institution Washington DC viewed 2 September 2023 .