yes I follow it...I think I have a pretty fair self taught knowledge, though I did a little extra finance study many years ago as well. I see the issue as theorists versus the practical effect. The RBA and Treasury are too big on theory, not so good on practical effects and pragmatic solutions. the " target" for inflation is ridiculous in the environment we are in...so much inflation is being imported and you can't put the dollar up by increasing rates further, but we also have huge local inflation!
I note your interest in effects on business ...something the news rarely does! RBA could've ( and still could though not as effective now) tweak with banking regulations ( e.g. the risk weighting on loans)and even by issuing warnings and guidelines to them, ather than put rates up across the board. I must admit I must read up other policy responses that can be done by central banks in a so called " free enterprise " economy, though Labor govt is doing a couple of regulatory things around gas for example .
Banks were very fixated on fixed price contracts, yes. I do not defend that scheme much though, as most " practical " people would know if you drop interest rates very low you would stimulate building...without the bonus scheme
