The Reserve Bank has limitless access to Australian dollars and a reputation to protect.
Now that we are recovering from recession, there's no telling how low we could push the unemployment rate. One estimate is 3.5%.
Former prime minister Paul Keating has launched an extraordinary attack on the Reserve Bank, accusing it of having "one of its dalliances with indolence”, and describing it as “the Reverse Bank”.
Its central scenario is the worst recession in 70 years. Its worst case scenario has the effects lingering for a decade.
Modern Monetary Theory is suddenly popular because it implies governments can spend as much as they need to. But that spending comes with risks.
Sipa USA John Lamparski/SOPA Images
Scott Morrison has called upon the Australian embassy to investigate the assault of a Channel 7 news crew by Washington riot police.
The global financial crisis taught us recoveries needn't be V-shaped.
Even when interest rates are already low, on balance further cuts boost rather than harm confidence.
Wes Mountain/The Conversation
The Conversation's 2020 economic survey points to a dismal year, with no progress on many of the key measures that matter for Australians and an increase in the unemployment rate.
Australian businesses are demanding rates of return far higher than their cost of capital, but that doesn’t make those hurdles wrong.
Businesses are reluctant to invest, but that might be because they know what they are doing.
When the cash rate hits 0.25% the governor will pause for breath. After that he will buy state and federal government bonds, pushing longer term interest rates down towards zero.
In a speech broadcast live on the Reserve Bank website, the governor explained how quantitative easing would work. He won't try it until the cash rate hits 0.25%.
MARTIN is helping the Reserve Bank see beyond its headquarters in Martin Place. And it’s open source, giving outsiders an insight into its thinking.
MARTIN stands for “Macroeconomic Relationships for Targeting Inflation". The bank's new computer model says there's much it can do to boost the economy after its cash rate hits zero.
The economy is weak, but it isn’t a crisis. Treasury Secretary Steven Kennedy addresses Senators on Wednesday.
Treasury Secretary Steven Kennedy says its up to the Reserve Bank to boost the economy. In normal times, that's not his job.
Treasurer Josh Frydenberg and Finance Minister Mathias Cormann unveil a budget outcome as good as balanced on Thursday.
A big surplus will come. It should be saved for something important, not simply spent.
Some things went wrong and some things went right. The resulting current account surplus is neither good nor bad.
Australia is becoming more like the United States. Increasingly, we invest overseas. Our domestic economy is weak.
Reserve Bank Deputy Governor Guy Debelle, Governor Philip Lowe, and assistant governors Luci Ellis and Michele Bullock at Friday’s parliamentary hearing in Canberra.
The Reserve Bank's best case scenario is that its forecasts are wrong.
We are being sucked in to something Trump started.
Australia has more to fear than most countries from a global trade and currency war. All eyes will be on the Reserve Bank governor Friday as he attempts to outline what might happen.
If you’re going to stimulate the economy, it’s wise not to wait.
A bold government would have delivered stages one, two and three of the tax cuts at once. Boldness is what we need.
Jacqui Lambie with Centre Alliance senators, who threw their support behind the government’s $158 billion income tax cuts, guaranteeing the package will become law.
After a hectic first week for the new parliament, Michelle Grattan speaks with Deep Saini about Jacqui Lambie's role in helping pass the government's tax cuts, and a further cut to interest rates - now 1%.
Philip Lowe is grabbing a rare opportunity to push the floor under unemployment lower.
Philip Lowe is on the cusp of permanently changing Australia. He stands a good chance of being one of the best governors since the first, who ushered in the goal of full employment.