Reserve Bank of Australia governor Philip Lowe (Image: AAP/Joel Carrett)

There's now a clear split within policymaking ranks over Australia's path back to economic growth and low unemployment.

On the one hand there is Josh Frydenberg and most of the government -- especially right-wing backbenchers -- backed by big business and their media cheerleaders at the Financial Review and News Corp, who think that Australia must reform its way to growth via a supply-side agenda of tax reform, industrial relations changes and deregulation.

On the other side is the Reserve Bank (RBA) governor Philip Lowe, who says demand is the central problem in the economy.