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

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  • Ross Garnaut
  • David Vines

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.

Suggested Citation

  • Ross Garnaut & David Vines, 2023. "Monetary Policy Mistakes and Remedies: An Assessment Following the RBA Review," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(3), pages 273-287, September.
    • Handle: RePEc:bla:ausecr:v:56:y:2023:i:3:p:273-287
    DOI: 10.1111/1467-8462.12528
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    References listed on IDEAS

    as
    1. Isaac Gross & Andrew Leigh, 2022. "Assessing Australian Monetary Policy in the Twenty‐First Century," The Economic Record, The Economic Society of Australia, vol. 98(322), pages 271-295, September.
    2. Karl Whelan, 1997. "Wage Curve vs. Phillips Curve : are there macroeconomic implications?," Open Access publications 10197/246, School of Economics, University College Dublin.
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