But Bernie Fraser, who was RBA governor between 1989 and 1996, says political parties have been doing just that for decades.

"The problem in my mind is that all ideologies are inevitably divisive, very damaging to both economies and societies," the economist told the Australia Institute's revenue summit in Canberra on Wednesday.

"They frustrate the development of good policies that are necessary to develop good societies."

Mr Fraser said the best way to achieve what most governments aim for, being a society where everyone winds up better off, is a more pragmatic approach to policy-making.

"An approach that picks the best out of the market system, lets the market work where it does work," he said.

"But it's also necessary to be prepared to have the government step in with spending and other activities that get compensated for where the market is failing."

To make such an approach work, Australia needs to have open and honest debate about policy and the implications of ideologies, Mr Fraser said.

That hasn't occurred for at least 20 years, but the current quality of public and parliamentary debate is the worst he's seen in 50 years, he said.

"Instead of focusing on facts and research information and honest debate and presentation of those things, all that's been replaced by assertions," he said.

Pressure from lobbyists to back up those assertions, and budget modelling done by people eager to support one conclusion, were also part of the mix.

The state of the public service is not helping, Mr Fraser said.

"Public service, unfortunately in my observation, is only a shadow of what it used to be in terms of providing expert, independent, forthright advice on all aspects of fiscal policy."

Australian Associated Press