By James GlynnSYDNEY--Australian economists have called for the government's proposed review of the Reserve Bank of Australia to be fully independent and led by a foreign monetary policy expert. Treasurer Jim Chalmers indicated last week that the review, which will be the first in decades for the RBA, might happen early in Labor's term. The usual signing of a new operating agreement between the central bank and an incoming government would be delayed until after the assessment of the RBA is completed. The group of economists from business and academia, which includes former RBA board member Warwick McKibbin, said the review might be undermined if its terms of reference are set too narrowly. Such aims are the responsibility of government that has a broader tool set--not a central bank," he saidCentral bank reviews in some other countries have been led by foreign experts.

Source: Wall Street Journal May 29, 2022 22:01 UTC