The Reserve Bank of Australia’s monetary policy has been criticised as unfair and ‘too blunt’. But what are the alternatives?
has stirred up arguments about whether monetary policy is the fairest and most effective way to curb inflation.
For decades, Australia has relied on monetary policy run by an independent central bank working in tandem with fiscal policy run by governments, particularly the commonwealth, to keep inflation in check and the economy growing.By the end of 2022, prices were advancing at an annual rate of almost 8%, the most since the early 1990s.
Coates says a key issue often overlooked in the fairness debate is that wealthier people tend to borrow more than those earning less – and the difference has been increasing, according to data from the Australian Bureau of Statistics.
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