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RBA’s Philip Lowe has thrown the kitchen sink – The Australian Financial Review
As monetary policy loses its effect, the central bank has to take greater and greater risks with unintended consequences.
Despite years of unease at QE and various other forms of unconventional monetary policy, the RBA has finally crossed the Rubicon and joined the decade-long global currency wars.
It does not want to be criticised for not doing enough to support the Australian economy. Concerns about the negative consequences of these policy actions have been diminished in favour of throwing the kitchen sink at an economy it is clearly very worried about.
In setting a formal quantity target for government bond purchases,…
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