Paul Keating says the RBA is not doing what is needed to stop the COVID recession worsening
By business reporter Gareth Hutchens
Posted 10hhours ago, updated 6hhours ago
https://www.abc.net.au/news/2020-09-24/paul-keating-attacks-rba-over-recession-response/12694710
Key points:
Former Prime Minister Paul Keating has accused the Reserve Bank of "indolence"
He says the RBA should purchase government bonds directly from Treasury to finance the Commonwealth's deficit spending
Mr Keating argues the Government and RBA should take unorthodox actions to protect and create jobs

Government 'able to finance itself'
Mr Keating was scathing of the RBA's conservative incrementalism, arguing bolder policy moves are required
to confront the worst economic crisis in 90 years.
He said there was no reason why the RBA should not adopt monetary financing of deficit spending.
In arguing this, Mr Keating appears to be siding with proponents of a school of economic thought called Modern
Monetary Theory who have been arguing there is no need for the RBA to buy bonds from the secondary market
to fund government spending measures.