The Reserve Bank and interest rates: Explained - Selwyn Cornish, ANU, April 2010

[wyrwich]

The best model of a product or service is the most effective and efficient, this service or product should be able to stand up to criticism until it is overtaken by a more effective and efficient version. The central banking system has not done this. Central banking tends to wreak havoc on an economy by systematically devaluing a currency by over creating this currency against nothing of intrinsic value (such as gold), resulting in never-ending inflation. Why isn't it subject to criticism?.

[spasmoid1971]

Doesn't the RBA simply follow America's lead with the setting of the interest rates?

Doesn't the RBA create inflation by the creation of credits (Section 8g of the Reserve Bank Act) which are spent into the country's economy?

Isn't the cessation of money up credit out of nothing the least painful and more effective way of keeping inflation down since jacking up interest rates just causes suffering for both businesses and private individuals? Isn't this the creation of the aussie battler?

[vilemerchant]

How could we be following America's lead when our interest rates are going up while America's have been at near zero for years?