Reserve Bank Board

[Julia]

Well now, why are we not surprised that the government has replaced Prof Warwick McKibbin - who has been especially criticical of the government's decisions, most particularly the BER - and has further suggested the government has been making the Board's life more difficult by the stimulus payments which then the Board had to raise rates to counter, and Donald McGauchie, who has also refused to be a mouthpiece for the government.

Such a shame to see these people go.

 

[sails]

I thought RBA board members were supposed to be independent but it looks like John Edwards is from the Labor Party. These are the two replacements:

[Dow Jones] Australia Treasurer Wayne Swan is set to appoint former HSBC economist and Labor party veteran John Edwards and BG Group Managing Director Catherine Tanna to the RBA's board, according to the Australian Financial Review newspaper, which doesn't cite its sources. A spokesman for the Treasurer declines to comment. The RBA board meets next week and is widely expected to stay on hold. Two members are set to be replaced: Donald McGauchie and academic Warwick McKibbin. (enda.curran@dowjones.com)

http://www.morningstar.co.uk/uk/markets/newsfeeditem.aspx?id=134292890303683

and more from the AFR: http://afr.com/p/national/swan_appoints_tanna_edwards_to_rba_WdbxArli6xmG4FOwn0MMyJ?hl

 

[GumbyLearner]

A reminder

 

[tothemax6]

Really they should just get rid of the ridiculous thing. We wouldn't have to worry who is involved then. The RBA hasn't done too bad compared to other central banks, but we are still placing our economy in the hands of central planners. When they make a mistake, and like Greenspan and Bernanke - they will, we will suffer.

 

[Julia]

I disagree overall, tothemax. Our Board has done a pretty good job, especially when you consider how they have had to act to counter stupid government behaviour.
I'd put more trust in the Reserve Bank Board (to date, not necessarily as it will be from now on) to run the whole damn country than in either side of politics.
Glenn Stevens has an impressive 'solidity' and calm imo.

 

[konkon]

This is just additional 'proof' that there is no such thing as independence. Why are we allowing ourselves to be brainwashed that there is independence in this whole network?

 

[Julia]

I was so ***** off about Prof Warwick McKibbin being dumped as a result of his criticism of the government that I sent him an email of thanks for his fearless attitude and expressed my disappointment that he'd not be continuing in this role.

Received such a nice response, essentially to the effect that he was gratified to know some people do listen.