Greens' submission to RBA review

The Greens have called for significant changes to the RBA’s make up and operations in their submission to the Government’s review of the central bank.

“The RBA is not fit for purpose and needs a massive shake-up,” Greens Economic Senator McKim said.

“There is a very real possibility that a recession is coming at us. The RBA risks trashing the economy, smashing wages and putting large numbers of people out of work.”

“The government and the RBA need to work much more closely together, and in a much more transparent way, to respond to inflation and achieve their legislated objectives.”

“The RBA has been captured by corporate interests and as a result has an anti-worker and anti-wage growth bias.”

“The Board needs urgent democratisation and representation from a broader cross-section of society, including organised labour.”

“A revised, more democratic RBA would drive the transition to a clean economy and help deliver a fairer society.”

The Greens’ submission recommends:

• The creation of a fourth objective for the bank, regarding “the maintenance of a stable ecology and climate”.
• The RBA’s board should have representation from a broad cross-section of society, including representation from trade unions, and limit representation from business.
• Prudential regulation be shifted from APRA to the RBA.
• The RBA and the government must develop a credit policy to direct credit to productive ends, including a transition to a low-emission economy.
• The Government the RBA work more closely together to respond to inflation