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of New South Wales






Last updated 14 October


Federal Treasury

The Minders and the Ministers

NSW Treasury

Parliamentary Budget Office

Productivity Commission

Public Sector Governance

Reserve Bank of Australia

Regional Forums

Earlier links are at the top of each section



Federal Treasury


Federal Treasury

A 6-page introduction to the links in this subsection is available at: http://www.accci.com.au/PoliticsofTreasuryForecasting.pdf.

John Wanna, “Treasury and Economic Policy – Beyond the Dismal Science”, Australian Journal of Public Administration, Vol. 70, No. 4 (December 2011), pp. 347-364.  Available to subscribers at:  http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8500.2011.00747.x/abstract.  After discussing the difficulties of evaluation the capacity of Treasury to contribute to economic policy-making in Australia, the author proceeds to undertake such an evaluation and presents a generally favourable report.  Treasury’s ability to transcend big changes in orientation from a globally small and well-ordered economy to one that is far more complex and open to the full range of external disturbances is well recognised.  Wanna suggests that this was achieved as a result of Treasury seeking “to broaden its conception of economic wellbeing and provide whole of government advice rather than rely on narrow economic-ideological doctrine.”  This seems to have worked during the transition from what we were to what we are now, but what we will become is yet unknown.  We hope that Treasury does more than keep up with this continuing transition and helps to inform the pace if not also the direction of the transition.

Gareth Hutchens, “Treasury Admits Revenue Forecasts Out to Tune of $8b a Year”, The Sydney Morning Herald, 23 February 2013.  Available at: http://www.smh.com.au/national/treasury-admits-revenue-forecasts-out-to-tune-of-8b-a-year-20130222-2ewxh.html.  The article discusses the “Review of Treasury Macroeconomic and Revenue Forecasting” that was completed in December 2012 and released on 22 February 2013.  A copy of the Review is available at: http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2013/forecasting_review/downloads/PDF/forecasting-review.ashx.  For more comments on this and similar matters arising from Treasury:

Ross Gittins, “It Takes No Brains to Kick Treasury”, The Sydney Morning Herald, 20 May 2013.  Available at: http://www.smh.com.au/business/it-takes-no-brains-to-kick-treasury-20130519-2jutv.html

David Uren, “Budget Numbers Add Up, Says Treasury, but the Forecast is Clouded”, 22 May 2013.  Available at: http://www.theaustralian.com.au/national-affairs/treasury/budget-numbers-add-up-says-treasury-but-the-forecast-is-clouded/story-fnhi8df6-1226647966988

Myriam Robin, “Economic Pulse: How Do Treasury’s Forecasts Stack Up? Smart Company, 22 May 2013.  Available at: http://www.smartcompany.com.au/economy/055661-economic-pulse-how-do-treasury-s-forecasts-stack-up.html

Jessica Irvine, “Stop the Rot on Treasury Forecasts”, Business Spectator, 24 May 2013.  Available at: http://www.businessspectator.com.au/article/2013/5/24/federal-budget/stop-rot-treasury-forecasts.

Economic Roundup Issue 2, 25 July 2014.  Articles include: “International Economic Cooperation – Is It at Risk?” “Capacity Development in Economic Policy Agencies,” “Capital Gains Tax: Historical Trends and Forecasting Framworks,” “Deregulation in Australia,” and “Jim Cairns: The Dreamer.” Available at: http://www.treasury.gov.au/PublicationsAndMedia/Publications/2014/Economic-Roundup-Issue-2-2014.

John Fraser, Sectary to the Treasury, “Address to the ACCC/AER Regulatory Conference 2015, Brisbane, 6-7 August 2015.  Available at: http://www.treasury.gov.au/PublicationsAndMedia/Speeches/2015/ACCC-AER-Regulatory-Conference-2015.  Comment by Ross Gittins, “Competition Is the Key to a Brave New Australia,” The Sydney Morning Herald, 15 August 2015.  Available at: http://www.smh.com.au/business/the-economy/competition-is-the-key-to-a-brave-new-australia-20150814-giyzok.html.



The Minders and the Ministers


The Minders and the Ministers

Richard Mulgan, “The Moran Report: Where Have All the Ministers Gone?”, Policy and Governance Discussion Paper 10-06), Crawford School of Economics and Government, Australian National University.  Available at: http://www.crawford.anu.edu.au/degrees/pogo/discussion_papers/PDP10-06.pdf.  The author presents a critical evaluation of the report (see citation below) and is generally critical of its “incomplete and inappropriate model of public management.”  Moreover, “by
emphasising citizen engagement, while being almost silent on service to elected ministers, the Moran report implicitly endorses a preference for grass-roots responsiveness over popular responsiveness via elected ministers.  […]  Secretaries are under pressure to see that policies and programs are administered in ways that ministers will be able to defend publicly.  In doing so, it gives the impression that secretaries remain in sole charge at the centre, occasionally accountable to the public through grass-roots responsiveness to citizens and communities but otherwise answerable only to themselves, the stewards of their own fiefdoms.”  The Moran Report is officially known as “Ahead of the Game: Blueprint for the Reform of the Australian Government Administration” and is available at: http://www.dpmc.gov.au/publications/aga_reform/aga_reform_blueprint/index.cfm.

Richard Mulgan, “What Future for Free and Frank Advice”, Policy Quarterly, Vol. 8 No. 4, November 2012.  Available at: http://igps.victoria.ac.nz/publications/files/920432ee6ad.pdf.  The paper was presented at a round table organised by the Institute of Public Administration New Zealand and the Institute for Governance and Policy Studies.  The speaker was invited to give the lecture as part of the centennial commemorations of the Public Services Act of 1912.  Some attention was given to key developments since the Act went into effect, but much more was given to current needs, with comments such as: “[I]t is disturbing to read a recent proposal that the State Services Commission might eventually merge with the Department of the Prime Minister and Cabinet”.  “Public servants should not compromise their respect for truth and evidence in order to accommodate the views of their political masters”. The two documents reported here by Richard Mulgan represent a much needed call to return to the basics in public administration.



New South Wales Treasury


New South Wales Treasury

Phil Gaetjens, Secretary of NSW Treasury, speech presented at the 2013 Transforming Financial Management of the NSW public sector forum on 18 March 2013.  Available at:
http://www.treasury.nsw.gov.au/__data/assets/pdf_file/0020/24680/Phil_Gaetjens_IPAA_Speech_notes_and_Slides_March_2013_dnd.pdf.  The presentation focuses on Treasury’s “once-in-a-generation reform program to transform financial management in the NSW Public Sector. The changes reflect a challenging fiscal environment, increased expectations of transparency and accountability, and the broader goal of better public sector management. I will return soon to these challenges.”

NSW Government “Half-Yearly Review 2012-2013”, 20 December 2012.  Available at: http://www.treasury.nsw.gov.au/__data/assets/pdf_file/0006/24297/2012-13_Half-Yearly_Budget_Review.pdf.  This is in compliance with section 8 of the Public Finance and Audit Act 1983 to revise projections for the current financial year, to revise forward estimates of major economic aggregates and to present the latest economic projections for the current financial year.




Parliamentary Budget Office

“Unlegislated Measures Carried Forward from the 2014-15 Budget,” 29 May 2015.  Available at: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office/Chart_packs.

“2015-16 Budget and Forward Estimates – Charts,” 28 May 2015.  Available at: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office/Chart_packs.

“National Fiscal Trends,” Report No. 01/2015, April 2015.  Available at: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office/research_reports.  Includes analyses of trends in national fiscal position, revenue, expenses, net capital investments and net debt and financing costs.

“The Sensitivity of Budget Projections to Changes in Economic Parameters: Estimates from 2014-15 to 2024-25,” PBO Report No. 02.2014, November 2014.  Available at: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office.  The report focuses on the sensitivity of budget estimates to three trend-projections: labour productivity growth, labour force participation rates and the terms of trade. Media report by Gareth Hutchens, “Tony Abbott Budget to Blow Out by Billions More than Expected,” The Sydney Morning Herald, 26 November 2014.  Available at: http://www.smh.com.au/federal-politics/political-news/tony-abbott-budget-to-blow-out-by-billions-more-than-expected-20141126-11un79.html.


Productivity Commission


Productivity Commission

Australian Government Productivity Commission Draft Report, “Services Exports,” 2 April 2015. Available at: http://www.pc.gov.au/inquiries/current/services-exports/issues. 
The issues paper is intended to assist in preparing a submission to the Commission. 

Australian Government Productivity Commission Draft Report, “Childcare and Early Childhood Learning,” Draft Report, July 2014.  Available at: http://pc.gov.au/projects/inquiry/childcare.  The draft report was prepared for further public consultation and comment.  Final submissions are due Friday 5 September 2014 and final report is expected to be available by 31 October 2014.

Australian Government Productivity Commission, “Infrastructure for an Ageing Australia,” speech by Peter Harris, Chairman, to the Committee for Economic Development of Australia, Brisbane 9 May 2014.  Available at: http://www.pc.gov.au/__data/assets/pdf_file/0004/136426/infrastructure-for-ageing.pdf.  Harris noted the lack of attention in Australia to the slow growth in productivity and to specific infrastructural problems associated with an ageing population.  He attributed this mainly to the satisfactory pace of wealth generation during most of the 2000s, which came to an end with the global financial crisis.  He is nevertheless concerned that the current push in infrastructure development will proceed too rapidly and without adequate cost-benefit analysis.

Australian Government Productivity Commission, “Productivity Update”, April 2014.  Available at: http://www.pc.gov.au/__data/assets/pdf_file/0008/135935/productivity-update-2014.pdf.  The update indicates that labour productivity for the total economy increased by 2.2 per cent during the financial year ending in June 2013 but multifactor productivity (“the measure that come closest to the underlying concept of productivity,”) for the market sector declined by 0.8 per cent in the same period.

Australian Government Productivity Commission, “Public Infrastructure,” Draft Report, 13 March 2014.  Available at: http://www.pc.gov.au/projects/inquiry/infrastructure/draft.  The public are invited to examine the draft report and to make written submission and to participate in public hearing.  For brief comment see, Katharine Murphy, “Caution Urged on Using Private Finance ‘Magic Pudding’ to Build Infrastructure,” The Guardian, 13 March 2014.  Available at: http://www.theguardian.com/world/2014/mar/12/caution-urged-on-using-private-finance-magic-pudding-to-build-infrastructure.

Australian Government Productivity Commission, “Australia’s Automotive Manufacturing Industry”, Position Paper, January 2014.  Available at: http://www.pc.gov.au/projects/inquiry/automotive/position.  Note this paper was foreshadowed in the “Preliminary Findings” reported below and  the Commission is inviting written submissions in response to the position paper by Thursday 13 February 2014.  For comment on the paper, see Mark Hawthorne and James Massola, “Ongoing Financial Support for Car Industry ‘Not Warranted’ Productivity Commission Report,” The Sydney Morning Herald, 21 January 2014.  Available at: http://www.smh.com.au/federal-politics/political-news/ongoing-financial-support-for-car-industry-not-warranted-productivity-commission-report-20140131-31rq2.htm.

Preliminary Findings, “Australia's Automotive Manufacturing Industry,” 20 December 2013.  Available at: http://www.pc.gov.au/projects/inquiry/automotive/preliminary.  The report examines the global context and trends in automotive manufacturing, and the factors affecting the competitiveness of the Australian automotive manufacturing industry.” A position paper is expected to be released on 31 January 2014, which will consider potential options for government assistance to the automotive industry.  Public submissions are invited.

Staff Working Paper, “Productivity in Manufacturing: Measurement and Interpretation,” 6 December 2013.  Available at: http://www.pc.gov.au/research/staff-working/manufacturing.  The working paper examined the declining growth of multifactor productivity (productivity achieved by means of more efficient use of both capital and labour) in Australian manufacturing and concluded that “there is no overarching systemic reason for the large decline.”  Contributing factors in the decline may therefore be temporary or one-off influences.  Comment by Ross Gittens, “Go Figure – the Ups and Downs of Productivity,” The Sydney Morning Herald, 14 December 2013.  Available at: http://www.smh.com.au/business/go-figure--the-ups-and-downs-of-productivity-20131213-2zd08.html.

Commission Research Paper, “An Ageing Australia: Preparing for the Future”, 22 November 2013.  Available at: http://www.pc.gov.au/research/commission/ageing-australia.  The report focuses on the effects of ageing on economic output (underpinned by changes in population, participation and productivity) and the resulting implications for government budgets were current policy settings to be maintained. In that context, it will help inform the forthcoming Intergenerational Report (IGR).

Inquiry Report, “Public Infrastructure,” 14 July 2014.  Available at: http://www.pc.gov.au/projects/inquiry/infrastructure/report.  Volume 1 contains the overview, recommendations and findings as well as chapters 1 to 8 (infrastructure provision, funding and financing.  Volume 2 contains chapters 9 to 16 and includes the scope for reducing the cost of public infrastructure and the necessary steps to implement the recommended reforms.

Annual Report 2013-2014.  The report was tabled in Parliament on 22 October 2014 and forms part of the Commission’s annual report series.  Available at: http://www.pc.gov.au/annual-reports/2013-14.  Chapter 1 of the report notes that “a central feature of the Commission is the scope its processes provide for people to participate in and scrutinise its work.” Further comments from the public are invited.

Workplace Relations Framework, Issues Papers, 22 January 2015.  Available at: http://www.pc.gov.au/inquiries/current/workplace-relations/issues.  Issues papers are intended to assist in preparing a submission to the Commission.  Initial submissions are due by 13 March 2015.  Draft report is to be released in June/July 2015. 

“Report on Government Services 2015”:


Approach to Performance Reporting, Vol. A – Includes an introduction to the “Report on Government Services, 28 January 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/approach-to-performance-reporting.


Child Care, Education and Training, Vol. B – Includes performance reporting for early childhood education and care, school education and vocational education and training. 6 February 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/childcare-education-and-training.


Justice Sector, Vol. C – Includes performance reporting for police services, courts and corrective services, 30 January 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/justice.


Emergency Management, Vol. D – Includes performance reporting for fire and ambulance services, 30 January 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/emergency-management.


Health Sector, Vol. E – Includes performance reporting on primary and community health, public hospitals and mental health management.  4 February 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/health.


Community Services, Vol. F – Includes performance reporting for aged care services, services for people with disability, child protection services, and youth justice services, 28 January 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/community-services.


Housing and Homelessness, Vol. G – Includes performance reporting for housing and homelessness, 28 January 2015.  Available at: http://www.pc.gov.au/research/recurring/report-on-government-services/2015/housing-and-homelessness.



Public Sector Governance


Public Sector Governance

Jenny Stewart, Francis Asha, Art Schulman and Chew Ng, “Governance Disclosure on the Internet: The Case of Australian State Government Departments”, The Australian Journal of Public Administration, Vol. 71, No. 4 (2012), pp. 440-456.  Available to registered users at: http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8500.2012.00789.x/abstract. 
The study reported in the article focuses on the nature and extent of governance information and the ease of finding this information directly on websites of government departments and also in annual reports which are downloadable from websites. The findings indicate “considerable variability in both the level of disclosure and the accessibility of the information disclosed and the study also highlights a lack of consensus regarding the meaning of governance and what governance comprises, together with the need for a more structured approach to communicating governance information to stakeholders.



Regional Forums


Regional Forums

Tara De Landrafft, “How Has Royalties for Regions Scheme Changed the Bush?” ABC The World Today, 8 Marcy 2013.  Available at: http://www.abc.net.au/worldtoday/content/2013/s3710991.htm.  The program consists of interviews of people in Western Australia by the ABC rural reporter about the benefits associated with the six and a half billion dollars spent on the Royalties for Regions Scheme in the state.

Andrew Wear, “Collaborative Approaches to Regional Governance – Lessons from Victoria”, Australian Journal of Public Administration, Vol. 71, No. 4 (December 2012), pp. 469-474.  Available with subscription at: http://www.ipaa.org.au/australian-journal-of-public-administration/.  The author examined Victoria's Regional Management Forums, which were established in 2005 to facilitate collaboration between Victorian Government departments and local government in each of Victoria's eight administrative regions, and found that the “Forums have been able to adapt to an evolving policy and governance context.  While not without their challenges, Regional Management Forums have given rise to regional-scale thinking and collaborative relationships. A commentary on this article, by Richard Murray, is available in the same issue of the Journal.

Lee Mizell, Dorothée Allain-Dupré, “Creating Conditions for Effective Public Investment:  Sub-National Capacities in a Multi-Level Governance Context,” OECD Working Papers on Regional Development, No. 4 (2013).  Available at: http://www.oecd-ilibrary.org/docserver/download/5k49j2cjv5mq.pdf?expires=1370072405&id=id&accname=guest&checksum=E8D8D6E09DD05C06B264C563A5617CA7.  The objectives of the authors are to 1) identify capacities that enable sub-national governments to design and implement sound public investment strategies for regional development, and 2) provide practical guidance for assessing and strengthening these capacities in a context of multi-level governance.”

Rudiger Ahrend, Marta Curto-Gra and Camila Vammalle, “Passing the Buck? Central and Sub-National Governments in Times of Fiscal Stress”, OECD Working Papers on Regional Development, No. 5 (2013).  Available at: http://www.oecd-ilibrary.org/docserver/download/5k49df1kr95l.pdf?expires=1370071519&id=id&accname=guest&checksum=762CE1608112C360F710C184974C59E0.  The main focus of this paper is the extent to which (and the conditions for which) sub-national debt levels tend to become unsustainable.  It further looks at the question as to whether and how national governments hand the burden of fiscal adjustment down to sub-national levels, mainly by looking at examples from the wave of fiscal adjustments in the wake of the 2007-09 global financial crisis.



Reserve Bank


Reserve Bank of Australia

Glenn Stevens, “The Lucky Country,” Speech to the Anika Foundation Luncheon,” Sydney, 24 July 2012.  Available at: http://www.rba.gov.au/publications/bulletin/2012/sep/pdf/bu-0912-9.pdf.  The Governor of the Reserve Bank commented on recent economic data that indicated that Australia had a real-life stress event in 2008 and 2009 and “few bruises” to the financial system were experienced during the period.  “Its fundamental stability was maintained.”

Philip Lowe, “Australia and the World,” Speech to the Commonwealth Bank Australasian Fixed Income Conference Dinner,” Sydney, 30 October 2012.  Available at: http://www.rba.gov.au/publications/bulletin/2012/dec/pdf/bu-1212-12.pdf.  The Deputy Governor of the Reserve Bank of Australia commented on the competing influences on Australia from Asia and the then troubled advanced economies, especially in reference to the exchange rate and interest rates.  He concludes that Australia is well placed to deal with the challenges.

Philip Lowe, “Productivity and Infrastructure,” Speech to the IARIW UNSW Conference on Productivity Measurement, Drivers and Trends, Sydney, 26 November 2013.  Available at: http://www.rba.gov.au/speeches/2013/sp-dg-261113.html.  Lowe’s speech focuses on recent trends in productivity growth in Australia and the significant challenge these trends pose.  It also includes comments on the role that investment in infrastructure can make to boosting productivity growth and our standard of living.  For comments on the speech, see Greg Jerico, “Infrastructure is Built with Rigorous Cost-Benefit Analysis, Not Politics,” The Guardian, 2 December 2013.  Available at: http://www.theguardian.com/world/2013/dec/02/infrastructure-is-built-with-rigorous-cost-benefit-analysis-not-politics.

Dena Sadeghian, Graham White and Patrick D’Arcy, “Macroeconomic Management in China”, The Bulletin, June Quarter 2013.  Available at: http://www.rba.gov.au/publications/bulletin/index.html.  The article provides a comprehensive analysis of recent monetary policy in China, as well as a brief coverage of the property market.

Philip Lowe, “The Journey of Financial Reform”, Address to the Australian Chamber of Commerce in Shanghai, 24 April 2013.  Available at: http://www.rba.gov.au/speeches/2013/sp-dg-240413.html.  This address by the Deputy Governor of the Reserve Bank is focused mainly on the deepening financial relationship between Australia and China, and includes a few comments near the end of the address about China financial sector reforms.

Glenn Stevens, “Financing the Asian Century”, Remarks to the Asia-Pacific Financial Market Development Symposium, Sydney, 10 April 2013.  Available at: http://www.rba.gov.au/speeches/2013/sp-gov-100413.html. The Governor of the Reserve Bank commented on the likely financial needs of the Asian region in the near future, making a number of observations about safety, efficiency and integration in financial systems.  He also noted that “Asia will in all likelihood continue to have multiple currencies for a long time yet.  A decade ago it was becoming fashionable for Asia to look at Europe and wonder whether that was a model for an Asian currency area in due course.  But we can now see all too clearly how demanding it is to be in a currency union, and how much supporting financial and political structure is needed for it to work.”

Philip Lowe, “Demographics, Productivity and Innovation,” Speech to The Sydney Institute, 12 March 2014.  Available at: http://www.rba.gov.au/speeches/2014/sp-dg-120314.html.  The Deputy Governor of the Reserve Bank chose to focus on longer-term issues associated with potential linkages between demographic changes, productivity growth and society’s attitudes toward risk and innovation.  Demographics are generally favourable to Australia, but this may result in an increase in external dependency unless there is a “collective ability to innovate and to adjust to the changing world.” 

Glenn Stevens, “Economic Update,” Speech to the Econometric Society Australasian Meeting and the Australian Conference of Economists,” Hobart, 3 July 2014.  Available at: http://www.rba.gov.au/speeches/2014/sp-gov-030714.html. Governor Stevens intreprets recently released economic data by stating:  the most recent set of GDP figures, while certainly encouraging, probably overstate somewhat the true ongoing pace of growth in the economy.  The Bank's forecasts from early May, which we have not materially changed, embody ongoing growth but, in the near term, probably a little below trend. We will provide an update of forecasts next month. See comment by Michael Pascoe, “RBA’s Glass Half Full as Productivity Gets Going,” The Sydney Morning Herald, 7 July 2014.  Available at: http://www.smh.com.au/business/comment-and-analysis/rbas-glass-half-full-as-productivity-gets-going-20140707-zsytu.html.

Glenn Stevens, “Challenges for Economic Policy,” Speech to the Anika Foundation Lucheon, Sydney, 22 July 2014.  Available at: http://www.rba.gov.au/speeches/2014/sp-gov-220714.html.  Governor Stevens focuses on the challenges that were involved “in dealing with and then recovering from the financial crisis that enveloped the major European countries and the Unites States (and, briefy, the whole world) in late 2008.” The view expressed is that policies put into operation were effective “in averting a potential catastrophe five years ago, but fostering a strong recovery has been much more difficult.” More detail is available from Gareth Hutchens, “Reserve Bank Hopes for G20 ‘Bounce,’” The Sydney Morning Herald, 33 July 2014.  Available at: http://www.smh.com.au/business/reserve-bank-hopes-for-g20-bounce-20140722-3cdna.html.

Philip Lowe, “Investing in a Low Interest Rate World,” Speech at the Commonwealth Bank of Australia’s 7the Annual Australasian Fixed Income Conference, Sydney 21 October 2014.  Available at: http://www.rba.gov.au/speeches/2014/sp-dg-211014.html/.  RBA’s deputy governor discusses the problems, and makes suggestions for solutions, concerning the “new world” of low interest rates and the associated problem of translating greater risk-taking on the financial side of the economy into greater risk-taking on the real side.

Glenn Stevens, “The World Economy and Australia,” Address to the American Australian Association luncheon, New York, USA. 21 April 2015.  Available at: http://www.rba.gov.au/speeches/2015/sp-gov-2015-04-21.html.  Governor Stevens noted in his address that whether the global capital markets are being influenced by a “temporary increase in risk aversion, a genuine dearth of investment opportunities, evidence of monetary policy ‘pushing on a string’, a portent of secular stagnation, or just unusually long lags in the effects of policy will probably be debated for some time yet.” In the meantime, central bankers must consider policy action that helps to maintain stability in the financial markets by monitoring all potential vulnerabilities.

Philip Lowe, “Managing Two Transitions,” Speech at the Corporate Finance Forum, Sydney, 18 May 2015.  Available at: http://www.rba.gov.au/speeches/2015/sp-dg-2015-05-18.html. The first transition in the Australian economy follows a period of extraordinary growth in investment in the resources sector combined with record high commodity prices.  The second “is what seems to be a transition to a world in which the global interest rates are lower, at least for an extended period, than we had previously become used to.”

Philip Lowe, “Fundamentals and Flexibility,” Speech at CFA Institute Australia Investment Conference, Sydney, 13 October 2015.  Available at: http://www.rba.gov.au/speeches/2015/sp-dg-2015-10-13.html. The deputy governor’s central message focused on the economic fundamentals with the view that they “are strong and provide us with the basis to be optimistic about the future.”