Good economic outcomes are not about monetary policy alone
The RBA review should have paid more attention to what Keynes once said about uplifting performance coming from a full orchestra, and not a virtuoso performance on a single instrument.
The Australian economy hasn’t performed well for citizens over the past decade. Real wages are lower than 10 years ago. Per capita output growth has been near the bottom of the developed country range. There has been no comparably lost decade in Australia’s history.
COVID-19 was bound to damage productivity and incomes growth. But our poor performance relative to other developed countries pre-dated COVID-19.
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Ross Garnaut is emeritus professor of economics at University of Melbourne. His new book Let’s Tax Carbon and Other Ideas for a Better Australia is published by Black Inc with La Trobe University Press.
David Vines is Emeritus Professor of Economics and Emeritus Fellow of Balliol College at Oxford University.
