Australia should float interest rates.

The RBA should manage the value (price) of our currency. The price of credit should be left to the market place.

We have a crazy state of affairs where the value of our fiat currency is left to wander amoungst the stars but the price we charge eachother for an IOU is dictated by beauracrats in some ivory tower.

I am sure it is a real hoot for rich dudes like Frank Lowy to dictate what rate we pay on our morgages, or earn on our cash managment trusts, however such regulated prices hardly represents any sort of free market ideal.

If the state must impose a fiat currency onto our national economy, then ensuring the steady value of that currency ought to be the objective of liquidity management. Liquidity should not be used to target interest rates.

Those who study economics miss the point entirely.Too often they see value in shares or wealth in assets.Real wealth both economically and socially is in your people.Too much emphasis is put into the share market rather than the human resource market.Reward those who produce,or suffer the collapse of too much greed by multi-national dominance.

We need a revival of small business,whereby individuals of no status can once again rise to prominance from nothing.
The collapse of an economy is only inevitible when Govts lose the discipline and awareness.

While Aust. is enjoying prosperity now,there are not many industries or companies of our name sake that actually supply our needs.Hence our balance of payments dilemma.We need a long term strategy to counter this.

There is no doubt we are headed for "interesting times" however we should not let "the interest" be the cause of our depression.

I think the writer might get a surprise on the impact of the proposed IR changes. A threat to workers pay and conditions cannot be glossed over, there will be a impact to the overall economy.

Terje..........You should write an article or two. Your comments make more sense than the principal articles.