Big Mac, With Interest On the Side

As the governor of Australia's reserve bank since 1996, Ian Macfarlane has had a great run. It's generally accepted that on his watch the central bank has made the right moves on interest rates, successfully keeping inflation low (and, just as importantly, inflationary expectations), while the economy (now in its 14th consecutive year of growth) has experienced the longest expansion in output since quarterly measures began in 1959. With a booming stockmarket, a strong dollar, buoyant commodity prices and an unemployment rate that could soon fall below 5%, Macfarlane faced a parliamentary committee last Friday to explain the bank's actions, statements...