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apples  australia’s reserve  big buyer  faire  fruit market  laissez faire  laissez  market  powerful  price  randy fan  rba  reserve bank 
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Preview: Comments on Peter Martin: Tuesday column: The RBA loses control

Comments on Peter Martin: Tuesday column: The RBA loses control





Updated: 2015-09-30T08:04:03.541+10:00

 



Randy... I'm a fan of laissez-faire, but fiat curr...

2007-09-12T13:57:00.000+10:00

Randy... I'm a fan of laissez-faire, but fiat currencies (like the Aussie dollar) are created by the RBA. I'd say creating the currency in the first place is a pretty large example of economic intervention, so I don't think laissez-faire makes sense with fiat currencies.

If you have a strictly enforced gold (egg, pebble, pick your rare commodity) standard, laissez-faire might make sense.



"Australia’s Reserve Bank has no more say over the...

2007-09-12T13:53:00.000+10:00

"Australia’s Reserve Bank has no more say over the price of money - the interest rate - than a big buyer or seller does over the price of apples at the fruit market."

Ummm... is this true? The RBA can create new dollars, so by your analogy, they'd be like a big buyer/seller at a fruit market with a machine that can create an arbitrary number of apples at no cost to them. Sure, it may take a while for those new apples to be distributed through the 'fruit economy', but assuming stable conditions, over the medium term, the RBA should be able to control the price of apples (especially downwards).

Or am I not seeing something?



Say it ain't so!You seem to be telling me that my ...

2007-09-12T11:26:00.000+10:00

Say it ain't so!

You seem to be telling me that my self-acclaimed, all-powerful government ISN'T so all-powerful.

Seriously; Thank you for the article. I have an enormously difficult time convincing my peers that the market is (and always will be ... in the long-run) more powerful than the most powerful of governments.
And that government action (interference) in the market is ALWAYS detrimental to the market … except when the action is to remove itself from inter-acting.

It is a pity that “laissez-faire” sounds so … French.

Regards,
Randy



So, you've been misleading us?

2007-09-11T14:53:00.000+10:00

So, you've been misleading us?