1 00:00:00,120 --> 00:00:02,120 Speaker 1: So how much is the Reserve Bank review about the 2 00:00:02,120 --> 00:00:04,400 Speaker 1: fiscal response to COVID and how much of it is 3 00:00:04,440 --> 00:00:06,800 Speaker 1: about election year? Some called it a surprise, but it 4 00:00:06,800 --> 00:00:08,680 Speaker 1: has been on the agenda of course, this whole term. 5 00:00:08,800 --> 00:00:11,159 Speaker 1: Jeff Mortlock is a former Reserve Bank Special Advisor and 6 00:00:11,240 --> 00:00:12,320 Speaker 1: is with us Jeff mourning to you. 7 00:00:13,200 --> 00:00:14,239 Speaker 2: Hey, yeah, morning, Mike. 8 00:00:14,480 --> 00:00:16,720 Speaker 1: Is there a value in a forget the politics just 9 00:00:16,760 --> 00:00:19,320 Speaker 1: for a moment? Is the revalue in an independent report? 10 00:00:20,480 --> 00:00:27,160 Speaker 2: Absolutely? Definitely there is. I've been advocating for that, including 11 00:00:27,200 --> 00:00:30,480 Speaker 2: to the Minister of Finance for at least two years, 12 00:00:30,760 --> 00:00:32,320 Speaker 2: and so it's well overdue. 13 00:00:32,560 --> 00:00:34,239 Speaker 1: You could have done it earlier, could have done it 14 00:00:34,240 --> 00:00:36,560 Speaker 1: in year one, year two, not year three election year. 15 00:00:36,600 --> 00:00:37,360 Speaker 1: Is that fair or not? 16 00:00:38,120 --> 00:00:39,720 Speaker 2: I think it is fair. I think it should have 17 00:00:39,720 --> 00:00:41,920 Speaker 2: been done earlier that I've taken too long to get 18 00:00:41,920 --> 00:00:45,599 Speaker 2: on to it. I don't read politics into it. There 19 00:00:45,680 --> 00:00:49,480 Speaker 2: might be, but it should have been done earlier. I think. 20 00:00:49,680 --> 00:00:51,879 Speaker 1: Is there any value in the review the Bank did 21 00:00:51,920 --> 00:00:52,960 Speaker 1: of itself or not? 22 00:00:54,280 --> 00:00:58,560 Speaker 2: Oh? Yeah, I think that was useful. But even though 23 00:00:58,600 --> 00:01:03,600 Speaker 2: that was internationally peer reviewed, it is not an independent review. 24 00:01:03,600 --> 00:01:06,360 Speaker 2: And I think what is needed, especially with an operationally 25 00:01:06,440 --> 00:01:11,640 Speaker 2: independent Central Bank is accountability and transparency and with that 26 00:01:11,760 --> 00:01:17,000 Speaker 2: comes the need for the Minister, using the powers in 27 00:01:17,040 --> 00:01:23,280 Speaker 2: the Reserve Bank Act to actually organize for commission and 28 00:01:23,520 --> 00:01:27,160 Speaker 2: independent review. And that's what this one is. 29 00:01:27,160 --> 00:01:31,720 Speaker 1: Is there value in whatever they say? If what happens 30 00:01:31,760 --> 00:01:34,080 Speaker 1: on the day depends on who you've got appointed. I 31 00:01:34,520 --> 00:01:36,480 Speaker 1: cite Paul Conway, who still works at the bank. He 32 00:01:36,520 --> 00:01:39,039 Speaker 1: thinks it all went fantastically well. And now if the 33 00:01:39,080 --> 00:01:40,640 Speaker 1: report says it doesn't, who's right. 34 00:01:42,600 --> 00:01:46,280 Speaker 2: Well, I'd put more weight on the independent report probably 35 00:01:46,319 --> 00:01:49,800 Speaker 2: than I would on what Reserve Bank staff who were 36 00:01:49,840 --> 00:01:53,560 Speaker 2: there at the time are saying. And look, there are 37 00:01:54,240 --> 00:01:58,760 Speaker 2: there's room for an array of views, multiple views. There's 38 00:01:58,760 --> 00:02:02,600 Speaker 2: no single right arm. But an independent assessment, if it's 39 00:02:02,600 --> 00:02:05,960 Speaker 2: done objectively, will shed light on things that I think. 40 00:02:06,040 --> 00:02:09,200 Speaker 2: It's difficult for someone who worked there at the time 41 00:02:09,240 --> 00:02:13,959 Speaker 2: and still works there, you know, to be purely objective 42 00:02:14,480 --> 00:02:17,480 Speaker 2: about They naturally defend their own actions. 43 00:02:17,560 --> 00:02:20,440 Speaker 1: It's got a foregone conclusion type vibe about it, doesn't it. 44 00:02:20,480 --> 00:02:23,000 Speaker 1: We're all expect we I mean, we all live through 45 00:02:23,040 --> 00:02:25,400 Speaker 1: this thing. We know it wasn't handled the way it 46 00:02:25,400 --> 00:02:27,760 Speaker 1: should have been. Is that what eventually is going to 47 00:02:27,760 --> 00:02:28,120 Speaker 1: be said. 48 00:02:29,760 --> 00:02:32,799 Speaker 2: I suspect so. I think it'll come out with a 49 00:02:32,880 --> 00:02:37,720 Speaker 2: number of observations and recommendations. In my sense is it 50 00:02:37,760 --> 00:02:44,240 Speaker 2: will say that the asset purchase program was a very 51 00:02:44,480 --> 00:02:49,200 Speaker 2: major costing mistake. It costs taxpayers this rate over ten 52 00:02:49,320 --> 00:02:54,520 Speaker 2: billion dollars. It probably will say it didn't achieve much 53 00:02:54,639 --> 00:02:59,560 Speaker 2: in terms of inflation objectives. If anything, it worked towards 54 00:03:00,160 --> 00:03:05,640 Speaker 2: boosting inflation at a time when that was catastrophic, was 55 00:03:06,200 --> 00:03:10,640 Speaker 2: not necessarily a boost to the real economy, which is 56 00:03:10,680 --> 00:03:11,920 Speaker 2: what it was designed. 57 00:03:11,560 --> 00:03:14,240 Speaker 1: To do exactly. Jeff NICs, I appreciate it. Jeff lock 58 00:03:14,280 --> 00:03:16,239 Speaker 1: Form of Reserve Bank Special Advisor. I mean he's just 59 00:03:16,280 --> 00:03:19,600 Speaker 1: written the report basically. I mean half the stuff we've 60 00:03:19,639 --> 00:03:21,400 Speaker 1: said on this program's written the report as well. I 61 00:03:21,440 --> 00:03:22,640 Speaker 1: think we all know where it's going. 62 00:03:23,120 --> 00:03:26,000 Speaker 2: For more from the Mic Asking Breakfast, listen live to 63 00:03:26,120 --> 00:03:29,200 Speaker 2: news talks. It'd be from six am weekdays, or follow 64 00:03:29,240 --> 00:03:30,799 Speaker 2: the podcast on iHeartRadio.