RBA's Ellis: expansionary policy needed

The Reserve Bank of Australia's (RBA) own Luci Ellis spoke at the Melbourne Institute's Economic and Social Outlook Conference.

Key highlights

Policy of the RBA needs to be expansionary.

It might take a while for the Aussie economy to absorb spare capacity.

Monetary policy won't change the economy's speed limit.

There are concerns that highly-productive 'superstar-firms' could outgrow competitors and become monopolies.

Advanced tech is creating entry barriers in some industries.

Trend could slow innovation, living standards growth.