The Reserve Bank of Australia (RBA) needs more monetary experts on its board as part of a much needed structural reform, the chief economist at the Centre of Independent Studies said.
Peter Tulip, who previously worked at the RBA, noted that while many media reports have suggested an external RBA review to focus on the bank’s inflation target, it was not the main issue.
“The answer is that there is too much reliance on one fallible individual: the Governor. The RBA needs better processes to identify and correct any mistakes he might make,” Tulip said in a paper.
The RBA had been persistently unable to meet its two to three percent inflation target for around five years, before the recent surge to 5.1 percent.
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