The many contradictions of Macfarlane and Lowe

Why Ian Macfarlane is (mostly) wrong about the RBA Review

In an interview with the 7.30 Report this week, former RBA Governor Ian Macfarlane claimed that the RBA Review’s recommendations in relation to the composition of the Board were ‘radical’, an experiment like no other central bank has conducted, ‘very bad policy’ and ‘a leap of faith.’ Yet only two weeks ago another now former Governor, Philip Lowe, told his farewell lunch audience that the Review’s recommendations are ‘exactly the same as the model we’ve had for 60 years.’ The two former Governors have a combined 17 years of experience chairing the Board and yet have completely different conceptions of the role and function of Board members. It is precisely this confusion that the RBA Review is trying to address with its recommendations.