Bob Johnston, the Reserve Bank governor pivotal to the floating of the Australian dollar and deregulating the banking system, has died at the age of 98
The Reserve Bank governor pivotal to the floating of the Australian dollar and deregulating the banking system has died at the age of 98.
In 1976, Johnston became the RBA’s chief representative in London at a time when the value of the Australian dollar was pegged to that of a basket of currencies including the US dollar and the British pound. One of Keating’s first actions as treasurer was to devalue the Australian dollar, which helped stem the flow of money out of the country.While Treasury at the time was opposed to deregulating the dollar, Johnston supported the move. In early December 1983, Keating allowed the value of the dollar to be determined by financial markets.
He said until the 1980s, the Reserve Bank had sought to deliver price stability through a range of measures that all struggled. These had included tying the value of the Australian currency to gold and, through the 1970s, setting interest rates to the volume of money moving through the economy. “The bank has been using inflation targeting for about half of its life now. And when you look over the last 30 years, it’s had inflation at 2.5 per cent for most of that time.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fixed rates and $300b in savings prolong rates pain: RBAChristopher Kent said interest rates were taking longer than usual to transmit through to the economy and Australia’s banks were “unquestionably strong”.
Read more »
Global experience says a two-tiered RBA board is betterThe Reserve Bank needs inside experts to decide monetary policy and well-credentialed outsiders to help supervise a very complex organisation, writes Jonathan Kearns.
Read more »
Sir Derek Jacobi: ‘The sound and magic of voice are disappearing from theatre’The acclaimed actor – who is to receive a lifetime achievement award at this year’s Olivier Awards – says the demise of repertory theatre is putting paid to the vocal prowess
Read more »
Apple HomePod review: a Siri speaker with a bass problemSmart speaker can sound great depending on the room but is only for those all-in on Apple devices
Read more »
‘Credit is the lifeline of the financial system’: Professor WuUniversity of Sydney's Head of Business and Finance Professor Eliza Wu says “credit is the lifeline” of the financial system and providing reliable credit throughout the economy fuels innovation and business performance. “Credit is the lifeline of the financial system so, of course, we want banks to be safe and sound and to be able to do their special job of providing credit throughout the economy,” Ms Wu told Sky News Business Editor Ross Greenwood. “That can fuel innovation, business activity and strong economic performance.”
Read more »
AI makes plagiarism harder to detect, argue academics – in paper written by chatbotLecturers say programs capable of writing competent student coursework threaten academic integrity
Read more »