Isn't it also what Hawke/Keating did for the Recession We Had to Have? And then we recovered so quickly that we had to hike the Interest Rates so high.
Isn't the Australian Reserve Bank just avoiding that again whereas the US version is more likely to cause a recession?
Vee, Yes, it seems the Australian Reserve bank is acting on a policy of price stabilisation rather than market stabilisation. The US Reserve with the Greenspan/Bernanke put is exacerbating risk by offering cheap bailouts through interest rates:
Reasonable people can disagree whether some of Greenspan's cuts were justified. But in my view, the record shows that he took things too far again and again. He overreacted to short-term market dislocations. He never really let speculators get punished. And he never let economic recession work its cleansing power.
Moreover, Greenspan would swoop in with a fresh flood of easy money no matter what kind of data he had on inflation, employment, growth, or virtually everything else.
IANAE but the Australian Reserve appears to have the better policy.
'Sworn to no party, and of no sect am I.' Frederick Vosper's republican motto.
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