Ian Macfarlane
Ian Macfarlane
government independence able
A government cannot be expected to allow independence to its central bank unless that bank is also accountable to it and to the wider public. That is, the central bank must be able to be judged on whether or not it has achieved its agreed objective.
above average economy forecasts fourth growing pace revised successive year
The world economy is growing at an above average pace for the fourth successive year and, significantly, forecasts have been revised upwards.
looking past quantity terms time
Realistically, in terms of any significant quantity we are probably looking at some time past 2010.
annual economy economy-and-economics expected forecast growth improvement investment modestly overall pick strong
With strong investment growth and an expected improvement in exports, our forecast for the economy overall is that annual GDP growth will pick up modestly during 2006 to about 3.25 pct.
correction debt distance far goes good household painful possible process quite rise
It is quite possible that the rise in household debt ratios could go a good distance further. The risk, of course, is that the process goes too far and that a painful correction ensues.
best monetary policy regime
It is the best monetary policy regime we have experienced and the best one available.
coming embrace emissions industry needs
The real emissions are coming from industry. And it's industry which needs to embrace the technology.
agreement australia bearing committed fully means mind production signing start terms until uranium
Australia is already fully committed in terms of uranium production through until about 2008, bearing in mind that the signing of this agreement means that this is really only the start of the process.
risk precaution over-confidence
When everyone feels that risks are at their minimum, over-confidence can take over and elementary precautions start to get watered down.
years growth progress
For years I have made the point that progress in winding back economic slack is made not by high growth in any individual year, but by maintaining an expansion over a sustained period.
people rooms cabinets
If people can't abide by the confidentiality of the cabinet room, then they should leave the cabinet.
strong past average
For equity markets, the combination of low interest rates, strong economic growth and low inflation has proved very beneficial, with global share markets rising solidly in each of the past three years. This has been underpinned by strong growth in profits so that, notwithstanding the rise in share prices, P/E ratios have been declining on average.
attitude favour economic
Most of us at the Reserve Bank come from a background in economics and hence have a predisposition in favour of free markets and a sceptical attitude towards intervention in those markets unless there is a clearly defined economic rationale for it.
years practice credit
Banks and other providers of credit to households have been competing vigorously to expand or protect their market share. In the process, lending standards have been progressively eroded so that lenders are now engaging in practices that would have been regarded as out of the question five or ten years ago.