My commentary:
By my understanding, the only tools the RBA have to control inflation are: setting interest rates, and quantitative tightening (and conversely easing).
Surely, there must be more regulatory powers we could give them. Understandably, many inflationary controlling functions should remain legislative/departmental, but the bank can act decisively and quickly, so SOME extra powers are in order, in my opinion, so they don't constantly resort to ONLY increasing mortgages and therefore rent as well, every single time.
Just spit-balling here: variable tax rates (income and corporate). Since taxation is so damn unpopular (not to me, tax is necessary to have a functioning society under capitalism), it would make some sense to give regulatory power to alter taxation rates (within a legislated range) to the independent RBA. Let them take the flak for increasing the top tax bracket rate by 3% or something.
What are your opinions/ideas about the RBA?
(Sorry if against community rules, but there weren't any in the side bar)
3 Comments
zurohki@aussie.zone · 4 pts · 160d
The RBA's tools are adequate for their role.
The government is supposed to be doing the detailed work of managing the economy through taxes and spending, they just... sometimes don't. And I don't think the solution is to transfer that role to the RBA.
MisterFrog@aussie.zone · 1 pts · 159d
This is fair, though how do you do things like raise taxes without everyone hating you? It's political suicide in the current climate
hanrahan@slrpnk.net · 1 pts · 159d
I don't agree, they don't have a tool box they have 1 tool
another idea for taking money out is a temp Super tax surcharge increase, the money goes to savings not to the bank.
there's zero reason we can't fix for 20 years but it would blunt the IR only tool even more. NZ and Australia are the worst in the world in that respect.
Sure governments have done lots of stupid shit, like decades of reliance on mega long supply fossil fuel chains and not built enough rail nor moved to PT and medium density housing for example but that's squarely on the shoulders of dopey voters fucking around and now finding out. We're still building roads for fucks sake, no matter what experts like the IPCC have advised for 50 years.