RBA governor Philip Lowe (Image: AAP/Joel Carrett)

As COVID-19 continues to wreak havoc across the western world, the toll it has also exacted on neoliberal policymaking is growing by the day.

With fiscal policy now devoted to a colossal expansion in the size of government and a trillion dollar debt by the political party that once whined about deficits a fraction the size, the obsession with fiscal discipline and smaller government that is a core part of neoliberal orthodoxy has been put to flight in Australia. Only the vaguest of promises that normal fiscal service will be resumed when unemployment falls below 6% remain.

This week it was the turn of monetary policy, with Reserve Bank (RBA) governor Philip Lowe announcing a significant shift in the bank's inflation targeting to abandon inflationary forecasts and expectations and instead base policy on actual inflation outcomes.