Economy

Aug 21, 2014

RBA does the vision thing better than politicians or business

The Reserve Bank's most senior officials yesterday made a more coherent case for the Australian economy than any we've heard from politicians recently.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

One of the more bizarre moments in recent economic history occurred yesterday, when a couple of mild-mannered, understated econocrats provided the most articulate argument we have heard for quite a while for the country and its business leaders to indulge in a bit of risk-taking.

In their regular appearance before the House of Representatives Standing Committee on Economics yesterday in Brisbane, Reserve Bank Governor Glenn Stevens, and his deputy, Phil Lowe, dwelt on the need for greater risk-taking by Australian business. Stevens had bemoaned the lack of “animal spirits” in the economy earlier in the year and he returned to that theme yesterday, telling the Committee that monetary easing had done all it could to fuel growth in Australia and help engineer the transition away from reliance on mining investment:

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3 comments

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3 thoughts on “RBA does the vision thing better than politicians or business

  1. Jaybuoy

    Glen Stevens and his acolytes would have some credibility if they had seen even a hint of the GFC coming…rather than as Stevens opined a while back that he thought he could see the tailights… the only lever these blokes have got a hold of is in the centre of their trousers…

  2. Simon Mansfield

    Glenn Stevens has much to answer for. In the meantime, he should just resign and spare us any more of his voodoo economics from the 1980s

  3. Altakoi

    I think they have a point. Banks should collate savings, price risk and allocate capital for productive investment. Thats what they are for. Our sell debt, and prefer not to move too far from nerf ball games like buying public monopolies and pumping up housing. Its not investment, its just churn for management fees and interest.

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