Reserve Bank Deputy Governor Pushes for Collaboration

The Reserve Bank of Australia’s deputy governor, Andrew Hauser, has emphasized the need for a stronger relationship between economic academics and policymakers. This comes as the central bank faces global challenges and aims to leverage these opportunities for growth.

The Need for Collaboration

Hauser expressed his thoughts in a speech to the Australian Conference of Economists, where he highlighted the importance of collaboration between academics and policymakers. He believes that by working together, they can better understand the problems and potential solutions to major economic issues.

Current Challenges

Hauser identified several key challenges facing the global economy, including the rollback of free trade, shifting geopolitical alliances, climate change, and the need to boost productivity growth. He noted that these issues present opportunities for Australia, given its comparative advantages in these areas.

Key Questions for the Future

Hauser posed several questions about the future of Australia’s economy, including how the composition and geographical location of export markets will change, how global commodity demand will evolve, and how structural shifts will impact monetary policy.

Focus on Productivity Growth

Hauser also emphasized the need to address the slowdown in productivity growth, which he described as "one of the most profound issues of our time." He argued that this requires a focus on "policy-relevant research" and the need to attract and retain top talent in the field.

Quotes from Hauser

Hauser stressed the importance of learning from the past, saying, "This [productivity slowdown] is by no means a uniquely Australian challenge – but the Second Golden Age demonstrated the power of harnessing academic ideas and policy to drive a long-term recovery in productivity." He also noted, "As the global paradigm shifts again, the challenge is to go for the hat trick. The good news is the policy questions facing us, and the world, lie four-square in Australia’s areas of comparative advantage."

Conclusion

In conclusion, Hauser’s speech highlights the need for greater collaboration between economic academics and policymakers in addressing the major challenges facing the global economy. By working together and focusing on policy-relevant research, Australia can harness its comparative advantages and drive long-term growth and productivity. The Reserve Bank of Australia’s "refreshed research strategy" aims to achieve this goal, and it will be interesting to see how this approach plays out in the coming months and years.