Paul Keating accuses the Reserve Bank of indolence and failing to do what is necessary to prevent the recession getting worse, potentially by directly financing the Government's budget deficit to try and boost employment.
They argue the RBA has the power to create money itself to finance the Federal Government's stimulus spending by purchasing the bonds directly from Treasury."I want to make it very clear that monetary financing of fiscal policy is not an option under consideration in Australia, nor does it need to be," RBA governor Philip Lowe said in July.
That means it has been waiting for Treasury to sell new Commonwealth Government bonds to private banks, pension funds, and insurance companies, before then buying those same bonds from those private entities at an agreed interest rate. "And what earned the Bank that nickname was that the Bank was too slow lifting interest rates in the face of the commercial bank credit bubble of the late 1980s and too slow in getting rates down in the early 1990s.Watch"This gave Australia a deeper recession that it would have otherwise had, notwithstanding that the commercial banks' crazy credit behaviour had to be stopped and gains against inflation had to be protected.
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.
Interest rates: RBA eyes more action to overcome Australian recessionThe Reserve Bank has signalled it may buy more government debt to drive interest rates lower, warning the Australian economy faces a 'gradual and uneven' recovery out of the coronavirus recession | swrighteconomy
Read more »
'Late to the party': Keating says RBA is failing the unemployed in scathing assessmentFormer prime minister Paul Keating has savaged the Reserve Bank for not doing enough to help the unemployed, saying it is having a 'dalliance with indolence' | swrighteconomy
Read more »
Live: More than 150 countries sign up to WHO's vaccine allianceThe World Health Organization says governments covering two thirds of the world's population have joined its coronavirus vaccine distribution alliance, including Australia, but China and the US have yet to sign up.
Read more »
Millions of Aussies to get access to faster NBNThe Federal Government has announced a $3.5 billion upgrade to Australia's National Broadband Network. 9News
Read more »
Not quite less than zero: RBA looks at lower rates and more borrowingThe Reserve Bank could push interest rates closer to zero as it presses all levels of government to use their upcoming budgets to borrow more money for infrastructure projects to help get Australians back into work | swrighteconomy
Read more »
Australia joins WHO-backed global COVAX pool to ensure coronavirus vaccine accessAustralia is now at the front of the queue to access coronavirus vaccines, when they become available, after joining a global pool backed by the World Health Organisation.
Read more »