The rate hike that will do nothing to curb inflation
www.abc.net.au
As Reserve Bank board members gather for the second day of meetings this morning, they already would have been peppered with dire warnings about the potential impact of the energy shock.

My commentary:

By my understanding, the only tools the RBA have to control inflation are: setting interest rates, and quantitative tightening (and conversely easing).

Surely, there must be more regulatory powers we could give them. Understandably, many inflationary controlling functions should remain legislative/departmental, but the bank can act decisively and quickly, so SOME extra powers are in order, in my opinion, so they don’t constantly resort to ONLY increasing mortgages and therefore rent as well, every single time.

Just spit-balling here: variable tax rates (income and corporate). Since taxation is so damn unpopular (not to me, tax is necessary to have a functioning society under capitalism), it would make some sense to give regulatory power to alter taxation rates (within a legislated range) to the independent RBA. Let them take the flak for increasing the top tax bracket rate by 3% or something.

What are your opinions/ideas about the RBA?

(Sorry if against community rules, but there weren’t any in the side bar)