RBA's Obscure 'Third Objective' Rule

The transcript discusses the evolution of central bank policies in Australia, starting from the 1930s when the government ordered expansionary policies that were not followed, leading to economic struggles. Post-WWII, the Labour government aimed for full employment and economic stability, despite Treasury's conservative stance. The 1990s recession saw a debate between quick and slow interest rate cuts, with Bernie Fraser advocating for employment and welfare considerations. The transcript highlights the challenges of balancing inflation, employment, and national interest in economic policy.

In what ways did the RBA's mandate evolve during the economic crises of the early 1990s?

Discuss the role of the Treasurer and the Governor during Australia's last recession in the early 1990s.