From here on our recovery will need more than fiscal policy, it'll need redistribution
- Written by Michael Keating, Visiting Fellow, College of Business & Economics, Australian National University
From the 1980s right through to the global financial crisis, the standard response in Australia and elsewhere to too weak or too strong an economy has been monetary policy — the manipulation of interest rates by a central bank, in our case the Reserve Bank.
Rates can be moved quickly, and central banks are seen to be independent and to behave...
