The prevailing economic consensus is that politically independent central banks are more effective in controlling inflation, a view that underpins recent reforms to the way that the RBA makes its decisions. But the recent increases in the RBA's cash rate have been highly controversial, and have fuelled popular discontent. Will central bank independence survive a possible backlash?

DELIVERY MODE

• Face-to-Face

SUGGESTED READING

• The Transmission of Monetary Policy, Reserve Bank of Australia
• How the Reserve Bank Implements Monetary Policy, Reserve Bank of Australia

COURSE OUTLINE

• The aims and objectives of central bank independence
• Why independent central banks are more effective inflation-fighters
• The current pressures on central banks and the possible political response

LEARNING OUTCOMES

By the end of this course, students should be able to:

1. Understand the aims and objectives of central bank independence
2. Assess current controversies over central bank decision-making
3. Analyse potential political responses to these current controversies