RBA Rate Decisions More Powerful in Smaller Doses (AFR Piece)

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The Australian Financial Review ran an opinion piece of mine (with my colleague, Jan Libich) that appeared in this morning’s edition (Tuesday 7 April), titled: “RBA Medicine Should be Dispensed in Smaller Doses” on p.43 (some of you will find the link to be gated)…or e-mail me a request if you cannot access it any other way.

It discusses an idea of ours to improve the impact of central bank interest-rate setting in Australia, which is to reduce the increment of change to the cash target rate (the main monetary policy instrument), from 25 to 10 basis points. Such a change would incur a relatively small adjustment cost, while providing a good return on extra ‘signalling power’. Read the piece to get more detail.

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My Appearance on ‘ABC News Breakfast’

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I appeared News Breakfast (ABC2 and ABC News24) back in January (6th) with Michael Rowland and Mary Gearin discussing the Queensland floods, retailers campaign against online competition, changes in the RBA Board, and Australia’s hosting of the 2015 Asian Cup. Only managed to upload it recently…enjoy!

WATCH ON YouTube

Liam Lenten on ABC News Breakfast, 6 January 2011 discussing four of the more newsworthy items of the day.