NewsBite

Opinion

John Simon

Don’t turn the RBA’s private talks into a fishbowl

Not allowing the central bank to test its thinking with people in financial markets will leave us with much less well-informed monetary policy decision-makers and, thus, worse monetary policy decisions.

John SimonFormer RBA official

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

There is a principle in physics called the observer effect. It states that the act of observing a system changes it.

In a famous thought experiment exploring the implications of this in quantum systems, Erwin Schrödinger asked us to imagine a cat, a flask of poison and a radioactive source in a sealed box. If the radioactive source emits a particle the flask is broken and the cat dies.

Loading...
John Simon is the former head of the Reserve Bank of Australia's economic research department.

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Economy

Fetching latest articles

Most Viewed In Policy

    Original URL: https://www.afr.com/policy/economy/don-t-turn-the-rba-s-private-talks-into-a-fishbowl-20240930-p5kehj