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

Ross Garnaut, David Vines

Research output: Contribution to journalArticlepeer-review

Abstract

This 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.

Original languageEnglish
Pages (from-to)273-287
Number of pages15
JournalAustralian Economic Review
Volume56
Issue number3
DOIs
Publication statusPublished - Sept 2023
Externally publishedYes

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