rba speech, 2006-09-17
In those days - and I refer here to the period before the decisions in the early 1980s to allow markets to set the exchange rate and yields on government debt - the problem was basically one of monetary control: policy-makers could not accurately control the amount of settlement funds available to the banking system because domestic policy actions to control these funds were often over-run by foreign operations we had to undertake to clear the foreign exchange market at the nominated exchange rate.
Sentiment: neutral
Topic: mp_interest_rate