Maurice Tutor

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Category > Management Posted 09 Jun 2017 My Price 11.00

Bank of Australia, Glenn Stevens

The following exchange comes from testimony given by the Governor of the Reserve Bank of Australia, Glenn Stevens, before the Commonwealth Parliament’s Standing Committee on Economics – on the 26th of August, 2011.CHAIR: I will go to a story which has not been so good since the mid-2000s, productivity growth. You have referred in a couple of your speeches to the fact that it has not been looking as good as it should be since about the mid-2000s. I assume that was part of a trend. I assume it did not happen quickly. Is that a case of good times making you a little bit fat, if you like?Mr Stevens : It is not a conclusion I was that keen to draw myself for quite a while, but I think you cannot avoid concluding from all the figures we have that productivity growth has slowed. It has slowed in a number of countries, not just here. I think I would be right in saying that it probably seems more pronounced here.(http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22committees%2Fcommrep%2F306ee889-2f7e-4661-964b-5264b58b7169%2F0001%22)Suppose there is a sustained, exogenous increase in aggregate demand. Using theaggregate-demand/aggregate supply model, explain why the Governor (and the Board of the Reserve Bank) might be concerned about a slowdown in productivity growth . (In other words, explain the implications for monetary policy due to this slowdown).

 

 

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Maurice Tutor
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Status NEW Posted 09 Jun 2017 10:06 AM My Price 11.00

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