Wanted: some out of the box thinking at the RBA

It can start by admitting that its current interest rate policy isn't working and neither will money printing, politely termed "Quantitative Easing", which has been floated in the media in recent weeks.

If the Governor's objective is higher levels of domestic demand, lower levels of unemployment and greater levels of business investment, it could do all of this by advocating publically and vigorously for a cut in the minimum wage. A cut deep enough to stimulate a steep rise in hiring, which would not only give the jobless a better image of themselves but would make available, to the private sector, the keenly priced labour required for the infrastructure projects the RBA talks about. And soon enough, those newly minted workers will have dollars to spend.

The fruits of such a policy include: the required infrastructure works will be undertaken, risks inherent in such infrastructure works will be carried solely by the private sector and the Commonwealth Budget will improve over time as less is spent on unemployment benefits as more and more jobless move into the workforce.

Simply put Governor: qui audet adipiscitur.