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

Ross Garnaut, David Vines

    Research output: Contribution to journalArticle

    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
    JournalThe Australian Economic Review
    Volume56
    Issue number3
    DOIs
    Publication statusPublished - 2023

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