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Craig Emerson

Reserve Bank is needlessly smashing jobs

By arbitrarily and wrongly defining full employment, the RBA will cause misery for vulnerable working Australians and small business owners that is entirely avoidable.

Craig EmersonFormer Labor minister and economist

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A thorough reading of the Reserve Bank’s November statement on monetary policy should distress anyone concerned about needlessly throwing vulnerable Australians out of work. The board is committed to increasing the unemployment rate to 4.5 per cent from its present 4.1 per cent for no useful purpose.

The statement on monetary policy confirms no interest-rate relief in the foreseeable future and, by explicitly ruling nothing in or out, it signals an outside chance of an increase in the cash rate as demanded by the Recessionistas.

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Craig Emerson is managing director of Emerson Economics. He is a distinguished fellow at the ANU, director of the Australian APEC Study Centre at RMIT and adjunct professor at Victoria University’s College of Business.

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    Original URL: https://www.afr.com/policy/economy/reserve-bank-is-needlessly-smashing-jobs-20241201-p5kuy6