The mountain has laboured and brought forth a mouse. After a lengthy process, the review of the Reserve Bank of Australia has produced a report saying that our existing monetary policy framework represents the best of all possible worlds. The only significant change proposed is to bring the RBA into line with other central banks by establishing a specialist committee to set the cash rate.
The central conclusion, shared by other central bankers around the world, is that there is no need to change the system of inflation targeting or even to adjust the targeted range of 2-3%. The global failure of inflation targeting to reach its stated goals, or to make the global financial system work properly, has been ignored.
