The Reserve Bank’s new monetary policy committee should operate like the diverse body of health experts that approved the COVID-19 vaccines.
or at least paid it much attention before the pandemic. But as we waited for ATAGI to recommend the approval of COVID-19 vaccines, its work was front of mind. We were hanging on their expertise.Diversity of thought and expertise
The RBA review recommended that the external members of the monetary policy board should collectively have expertise in “open-economy macroeconomics, the financial system, labour markets, [and] the supply side of the economy”. Notably, it’s collective expertise. No one person can be an expert on all those topics. Diversity of expertise is important.
But others, including New Zealand, Norway and Britain, have true outsiders on their committees. They are genuinely economic experts who bring diversity of experience and skills to the policy committee.At the RBNZ, there is an economist with experience in the public sector and union movement and another who is a leading agricultural economist.
The Norwegian central bank has a smaller committee with only two outsiders. One is a professor of economics who has international expertise in income equality while the other is at a housing research institute, showing her commitment by completing an economics PhD while on the policy committee.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX to fall, US banks hit by Moody’s warningAustralian shares are set to open lower, tracking losses in Europe and New York. Iron ore slips below $US100/tonne in Singapore.
Read more »
ASX to fall, US banks hit by Moody’s warningAustralian shares are set to open lower, tracking losses in Europe and New York. Iron ore slips below $US100/tonne in Singapore.
Read more »
Why the honeymoon is over — banks pull back on fight for new borrowersThe big banks were offering cashback deals and competitive rates to grab their share of the refinancing boom, but the trend has reversed as margins start to come under pressure, leaving some borrowers trapped between a mortgage cliff and a mortgage prison.
Read more »
Independent review into WA's handling of COVID outlines improvements needed to prepare for next pandemicA review into WA's handling of COVID praises frontline workers, but makes more than 30 recommendations to prepare the state for the next pandemic.
Read more »
Dad demands 'personal apology' after report praises WA COVID-19 responseHe claims the state&x27;s strict lockdown rules caused the death of his daughter, who couldn&x27;t visit from Sydney.
Read more »