Well-respected former Reserve Bank of Australia Governor Ian Macfarlane is very concerned about the changes being made at the Bank in response to the 'review'.
- The proposed move to establish a separate body within the Reserve Bank to make interest rates decisions in future, was "very bad policy" and "a leap of faith" which would undermine the authority of the governor
- has called on the government to open a public discussion about the proposals rather than immediately proceeding with them
- said the changes to be made are an experiment that goes against what every other central bank in the world has done. It would undermine not just the authority of the governor but the accountability of the bank on the decisions it takes
Read the full piece here. Then get short Australia.
