RBA policy errors highlighted by Governor Stevens There is a huge bucket of irony in RBA Governor Glenn Stevens speech to CEDA last night. For someone who...

RBA policy errors highlighted by Governor Stevens There is a huge bucket of irony in RBA Governor Glenn Stevens speech to CEDA last night. For someone who has passively sat by with the exchange rate ridiculously overvalued for several years and who has been reluctant to use monetary policy to manage the business cycle and the interest rate sensitive parts within, Mr Stevens calls for economic agents to most of all, [show] a willingness to take the occasional risk are a touch disingenuous. Stevens questions whether our overall business environment is conducive enough to risk-taking and innovation. Look in the mirror Glenn! It has been pretty obvious for the last couple of years that the Australian dollar has been over-valued, by a large amount, and this market misalignment is one reason why real GDP has been below trend over that time and as a result, the unemployment has risen to a decade high of 6.2 per cent. (VIEW LINK)