RBA policy options – moving down the unconventional path

With the Australian economy set to record a deep contraction in 2020 and a slow recovery in 2021, the conversation turns to what other policy options can be employed by both fiscal policy and monetary policy. In this podcast with Stephen Halmarick, Chief Economist and Head of Research and Belinda Allen, Senior Economist, two options of ‘unconventional unconventional’ monetary policy are discussed; negative interest rates and modern monetary theory, and the likelihood of its use in Australia. With these options still off the table for now, other ‘conventional unconventional’ policy options that could be expanded on are explored.

 

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