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RBA, monetary policy and $A

Comments on Stephen Koukoulas "The sum of all our dollar fears...", 20/09/2013, http://www.businessspectator.com.au/article/2013/9/20/currency/sum-all-our-dollar-fears

The RBA and many economists and commentators have really adopted a very funny approach, namely when the dollar was really very high at about 1.05 they argued that the RBA is powerless in influencing the currency while now when the dollar is at 0.95 or even lower, they are saying the RBA could do something to make it lower.

Of course, the RBA now has probably understood it can play a role of influencing expectations, although the fall of the dollar in the past had little to do with the RBA policy on interest rates. Rather, it was because the global factor of the Fed on future QEs. But that has not limited the RBA from joining the force in making the noise that it thinks the dollar should be lower even when it was at 0.90 or lower.
The RBA should have known that it might have an influence on expectations when the dollar was really high and should have done better to play that role at those times!

Having argued that I fully understand that the RBA has its difficulties in targeting multi goals with only one policy tool that is interest rate.

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