No Disgrace in Pointing Out the Obvious

In a previous post, I speculated about the likely media reaction to any comment by RBA Governor Stevens that might be seen to be critical of the NBN. Unsurprisingly, the need for a cost-benefit analysis of the NBN came up during the Governor’s appearance before the House Economics Committee. Michael Stutchbury says:

It’s a disgrace that the Reserve Bank governor has had to be dragged into political hot water to point this out.

As I argued in a previous op-ed, this is a misreading of the role of an independent central bank governor in public debate. The ability to speak out on important public policy issues is a mark of the Reserve Bank’s independence, not a threat to it. While the government may be in hot water as a result of the Governor’s comments, that is hardly a problem for Glenn Stevens.