ContextEvening speech at the 2023 Commonwealth Bank Global Markets Conference in Sydney; the Reserve Bank of Australia pursues low inflation and full employment and must balance the two.
Why it mattersBullock explains the trade-offs between inflation, jobs and financial risks.
Problems raised
Monetary policy must balance inflation and employment.
Prolonged easy policy can build up financial risks.
Sharp tightening later can expose vulnerabilities.
Solutions proposed
Use a clear framework balancing both mandates.
Consider financial stability in monetary decisions.
