The flicking of Martin Parkinson as Treasury Secretary was against the advice of John Howard and Peter Costello and despite Joe Hockey's desire to retain him. It proved to be a drawn-out affair, thanks to G20 preparations, but it happened. Glenn Stevens, centre, pictured with Christopher Kent and Philip Lowe, gives a tough assessment of the government's economic management. Credit:Alex Ellinghausen / Fairfax Among the other public service heads to roll was Andrew Metcalfe, a widely respected servant of governments of both colours. He had earlier been a Liberal staffer, but he had done what the government asked of him when he ran the Immigration Department – promoted the "Malaysian solution" and not turning back boats. Blair Comley's apparent mistake, along with Parkinson, was being tasked with development of the carbon price. He had been head of the Climate Change Department before Energy and Resources. Crazy brave

None of them had done anything as crazy brave as publicly tell the government its economic management was failing and, in a key area, fundamentally wrong. That's what governor Glenn Stevens did on Tuesday. If that wasn't bad enough, he directly contradicted the Prime Minister and Treasurer on their idea that there was nothing wrong with Sydney house prices continuing to rise. Suggesting it would be a good idea for the government to borrow more to invest in productive infrastructure instead of investing less as it has been is pretty much the economic consensus – Sydney housing is tabloid headline material. Stevens' term as governor comes to an end next year. He will have been the RBA's chief pilot for 10 years. His deputy, Philip Lowe, is highly rated – a very sharp and focussed mind. It's hard to find anyone with a bad word to say about him. By those who care about such things, it's generally thought he'd make a very good governor. Being conservative, maybe a bit boring, aren't disqualifiers in Martin Place.

But Lowe's speeches and parliamentary testimonies have perhaps been ahead of Stevens (at least until last Tuesday) in giving full and frank advice about what governments should do and, by implication, what this one hasn't been doing. The governor and deputy governor are singing from the same RBA hymn sheet on economic principles. Last November I wrote that: "I'm becoming a little worried about the Reserve Bank deputy governor, Philip Lowe. If he keeps making so much sense, keeping perspective, seeing the big picture through the political noise and posturing, there are dark forces that might prevent him taking the next step of becoming governor." I was being a little facetious at the time. It doesn't read that way now. Abbott's office hired John Fraser from UBS in London to replace Martin Parkinson, bringing in an investment banker outsider to shake up Treasury. Fraser had worked in Treasury early in his career, but that was a couple of decades ago. He took the job as a wealthy investment banker wanting to make a difference – an outsider. Ratbaggeries The development of a strong and independent Reserve Bank is a core strength of our national governance. The ratbaggeries of both sides of politics come and go in government, but the RBA provides a solid reference point. Our central bank retains an admirable culture of service to the nation, with a wealth of minds dedicated without fear or favour or vested interest to seeking the best outcome.

They make mistakes, of course, but fewer than most and are much more honest about it when they do. As Stevens said on Tuesday, some think the RBA should do more, some think less, so it's probably about right. And the institution is not above needing change at times. Paul Keating appointed an outsider, Treasury secretary Bernie Fraser, as governor for that reason. It proved to be a good move. Now though, the institution is running well. Along with Treasury, it performed outstandingly during the challenge of the GFC. We are close to pulling off an amazing transition of absorbing a massive upside terms of trade shock and resources investment boom without inflation getting out of control or, hopefully, falling into recession. The bank's succession planning is in place. But they're a vindictive lot, the Abbott regime.