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To: Moominoid who wrote (77760)	4/16/2008 11:30:45 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

That's a great talk on central bank freedom from political and market pressure by past RBA Governor Bernie Fraser. rba.gov.au I would suggest you reread it though as Fraser makes it quite clear he felt the RBA was quite independent during the Keating administration, in spite of slurs by the press to the contrary based in part on Keating's misguided humour, and continues to be so. The fact that Fraser mentions his predecessor Bob Johnston also said he felt completely independent illustrates that Johnston's poor showing was a result of incompetence rather than political influence from the Liberal PM Malcolm Fraser - or perhaps irretrievably bad policy by the Treasurer. I am at a loss to understand your misinterpretation. Perhaps you can post the passage upon which your understanding depends. Here's what I see: ************************** Critics have peddled the line over the years that the Bank was ‘political’, but no hard evidence has ever been advanced. There is none.** I also have denied that the alleged ‘in the pocket’ jibe was ever an accurate description of the relationship between the Treasurer and the Reserve Bank, as did my predecessor, Bob Johnston. The original quip was unfortunate enough, but its repetition ad nauseam, in the face of all the denials, was even worse in my view; it certainly did nothing to enhance the Bank’s standing in financial centres around the world. To concoct evidence where none existed, critics even impugned sinister overtones to my ‘mateship’ with Paul Keating. Some went so far as to suggest that Mr Keating only had to get on the phone to me and I would do his bidding. As well as being malevolently ignorant, such stories were extremely offensive to the other Bank staff and Board members involved in all the Bank’s decisions on monetary policy. Commentators should not be surprised, nor should they suspect intrigue, if a Treasurer and a Governor happen to see eye to eye on particular economic policies or strategies; and the Governor should not have to engage in public slanging matches with the Treasurer to demonstrate the Bank’s political independence. In a similar vein, while they sit somewhat uneasily with their declarations of central bank independence, I think it is understandable that Prime Ministers and Treasurers will make public comments on monetary policy from time to time. Intrepid questioning by members of the media alone is guaranteed to elicit an occasional comment from even the most guarded Treasurer! .