Monetary policy close to exhaustion

Australia was a world’s best practice economy for two decades, but in many ways that has become self-defeating acclaim as there has been no major reform to boost economic activity for more than a decade. Indeed the last major reform still in place today is the GST which was implemented in 2000. So that’s 15 years without a major policy change to boost our productive capacity, but this policy inertia was camouflaged temporarily by the China, mining and leverage booms. During this time, Australia lived through the ‘great complacency’, living off the waves of higher commodity prices without wanting to, or having to, put in any effort to move our boat downstream. But two years ago the current turned against the Australian economy and growth has sunk to a sub-trend pace... The RBA has done a great job in avoiding the recession which usually follows a mining investment unwind, but monetary policy is close to exhaustion and the pendulum to boost the Australian economy has swung over to the fiscal and government side. (VIEW LINK)