1. We learn a lot about “What Drives Phil Lowe?” from the RBA’s approach to the Review. Other than agreeing to cooperate, the Bank has not dedicated specific resources to prepare for and respond to the Review.
https://twitter.com/SatPaper/status/1583597751665061888
2.In fact, my understanding is that it is even worse as the RBA has not replaced staff that are serving on the Secretariat to the Review.
3. For anyone familiar with other central bank reviews, this is remarkable. As one example, a small part of the Federal Reserve’s intellectual effort on their recent review can be found here.
federalreserve.gov/monetarypolicy…
federalreserve.gov/monetarypolicy…
4. Should we understand that the Bank thinks the Treasurer will recommend continuance of the status quo; or that the Bank plans to refuse to implement recommendations, testing how much political capital the Treasurer is prepared to burn bringing the Bank to heal.
5. Regardless, the RBA apparently isn’t of the view that the public would be well served by internal reflection on the objectives, frameworks and institutional processes and procedures that determine monetary policy. This alone tells us a lot about the mindset of Bank leadership.
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