2019 11
I have a piece in The Conversation on what we learned from Governor Lowe’s speech last night about its prospective approach to QE. As I note in the article, the risk now is that the RBA repeats the US Fed’s mistakes by moving too slowly.
posted on 27 November 2019 by skirchner in Monetary Policy
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Very long time readers of this blog will know that the future of the US dollar was much debated in these pages in the mid-2000s. I have given these ideas a systematic treatment in a new report for the United States Studies Centre, The ‘reserve currency’ myth: The US dollar’s current and future role in the world economy.
This year, the euro celebrated its 20th anniversary. At the time of its launch at the beginning of 1999, it was widely expected the euro would assume a role equal to that of the US dollar in the international monetary system. Despite some early gains, in net terms, the euro has not increased its share since its inception two decades ago.
The campaign to internationalise the RMB from 2009 has also faltered. Measures of RMB globalisation have gone nowhere since 2016 as China’s communist party has prioritised state control. The inclusion of the RMB in the IMF’s Special Drawing Rights basket was little more than a vanity project.
posted on 11 November 2019 by skirchner in Economics, Financial Markets
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I have an op-ed in the AFR arguing that the Treasurer’s decision to leave its agreement with the RBA unchanged is a missed opportunity to hold the RBA accountable for its recent underperformance against mandate.
Robert Guy has a related piece in the same edition. The headline says it all.
The Treasurer just backed the RBA over what the market is telling us. We will see how that turns out.
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posted on 06 November 2019 by skirchner in Monetary Policy
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