RBA gives warning on Krudd's ETS

Clearly the RBA doesn't think much of the Treasury's economic models either, which will probably turn out to be about as reliable as the IPCC's climate models (which spectacularly failed to predict nearly a decade of global cooling).

Warwick McKibbin, who sits on the RBA board and is a climate change economist, said Prime Minister Kevin Rudd should not act before Australia knows what commitments other countries will make to reducing carbon output.
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"There is no way that at Copenhagen there can be a firm commitment on abatement because the US administration, whoever it is, won't have the people in place to negotiate a rules-based system," Professor McKibbin told the West Australian newspaper.

"What they will negotiate in Copenhagen is a set of principles - if you're lucky - and hopefully they'll separate mitigation or cutting emissions from investment in new technologies and forestry and land use actions."

Read it here.