What are the challenges facing the Reserve Bank of Australia? | 7.30

As governor of the Reserve Bank of Australia from 1996 to 2006, Ian Macfarlane oversaw some of the biggest changes in the way the RBA ran monetary policy.
He speaks with 7.30’s Laura Tingle about the challenges that are facing the Reserve Bank of Australia today.
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[@brendonpurnell2564]

I’m a part time hobby economist - where do I sign up to be part of the board?

[@jaytee7642]

Ian is correct, the part timers making critical decision on rates could end up been biased towards personal views. Next thing you know lobbyists will be in their ear

[@rolandnelson6722]

The greatest economist in the world sees Ian Macfarlane as the best central banker ever.

[@jeffreystorer4966]

Past interest rate rises although painful ,were not on loan's taken out for million dollar plus average homes ,

[@shiraz1736]

We are very close to entrenched inflation, but at least the multinational corporations and banks are making a killing.

[@bdayapraar6673]

People in general think of the RBA as Australias bank, the taxpayers bank. I think most people would be suprised to know that it is just a collection of various private banking interests that profit from the decisions that they make.

[@TankEnMate]

For every problem of the human condition there is a solution that is neat, plausible, and wrong.

[@rodicagazii8411]

Yes my settlement money

[@Eric-zo8wo]

0:43: 🏦 Ian McFarlane oversaw significant changes in the way the Reserve Bank of Australia ran monetary policy, including the floating of the dollar and the deregulation of financial markets. 4:25: 📊 The Reserve Bank of Australia is considering changing its advisory board to a decision-making board with votes taken at the end of each meeting and published. 8:04: 🤔 The proposal to expand the membership of the Bank of England's Monetary Policy Committee raises concerns about lack of knowledge and experience of the appointees. Recap by Tammy AI

[@11buster1000]

The biggest challenge to the RBA is getting as much taxpayers money to the richest Australians without too much blowback.

[@JackSmith-om8kw]

Someone has to do something about the drymouth audio, could you give him a sip of water, or move the microphone back, anything please please please.

[@dumdumbrown4225]

Australia is going backwards - all the gains the AUD has made in the last 30 years in terms of being independent from the politics of the Australian Government will be lost. Potentially the world will lose its confidence in the AUD and the cost of imports in Australia will rise as this beautiful island-continent goes back to a 1980s economy.

[@TheOnlyGecko]

This bloke is all over the place. First, he says it the proposal is "too radical", then he says appointing the academic members is "more of the same". It seems like he's scared of change, and wants the status quo to continue...

[@Hype7media]

I can't focus the host is hot

[@MathewOKeefe]

The RBA made so many extraordinary/embarrassing blunders that the government had no choice but to accept the recommendations immediately. I applaud the government for doing so, and also congratulate the Greens for ensuring the RBA was held appropriately accountable for the problems it created. Inflation doesn't fall from the sky, it's created by those running monetary policy. If the new Governor isn't better, they may be the last one before the institution is dissolved.

[@tonywilson4713]

If we were holding them accountable then we would have already executed most of them. That whole stupidity of pushing interests rates down and down was always going to bite when they went back up and they were always going to go back up.

[@dumdumbrown4225]

Without an independent monetary policy body in place, the world’s trust in the Australia’s currency would fall faster than any Australian PM’s reputation…

[@tonywilson4713]

@@dumdumbrown4225 NOBODY has ever proven that to be TRUE for any country. That's just another function of NEOLIBERAL ECONOMICS and its just as flawed as the REST of NEOLIBERAL ECONOMICS. NONE of the central banks are truly independent because they're all run by people from the banking industry and do whatever the banks want. Go have a look at how many Goldman Sachs people run the US Fed and we're no better. If you don't understand how much power the banks actually have over our lives then you really do need to WAKE UP.