(Staff article from the ABC NEWS Australia on 05 November 2022.)
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| Most cash RBA has printed last 30 yrs went to houses. |
The Australian
Greens say the Reserve Bank needs to be more democratically accountable: Senator
Nick McKim, the Greens' treasury spokesman, says the RBA must become more
accountable for the consequences of its policies, and it should accept some
responsibility for making inequality worse since the 1990s.
He says current monetary policy arrangements also
need to be re-imagined to help Australia confront the climate emergency. That
would include getting the RBA and government to play a more active role in
directing the flow of credit to productive ends, particularly the transition to
a low-emission economy, and to discourage the flow of credit to speculative
ends, particularly highly leveraged property investment, he says.
"This
policy would be given effect through prudential regulation and the RBA's use of
its own balance sheet," he said. Senator McKim has used his submission to
the RBA review to call for a number of changes to the way in which monetary
policy is conducted in Australia. He said under
central bank "independence", which has existed in Australia since the
1990s, monetary policy had become disconnected from democratic processes.