The Reserve Bank of Australia’s proposed new dual mandate to give “equal consideration” to full employment and price stability is not intended to elevate protecting jobs at the cost of high inflation, according to one of the economists who conducted a review of the central bank.
Renée Fry-McKibbin said the refined twin mandate would force the RBA to communicate its interest rate decisions more transparently by explaining the trade-offs between inflation and employment.
Loading...
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com