This paper examines whether and how local income inequality affects household debt and its composition using household panel data for Australia from the Household, Income and Labour Dynamics in Australia (HILDA) Survey.

This paper outlines how the Reserve Bank of Australia’s bank stress testing model works. It also shows how the model was useful in a real-world crisis, at the onset of the COVID-19 pandemic.

In this paper, the authors examine the effect on government bond yields of three Reserve Bank of Australia policy measures implemented following the onset of the COVID-19 pandemic. They also assess the impact of the three measures on government bond market functioning.

Company-level investment is very sensitive to changes in the new sentiment indicator, even controlling for fundamentals, such as current and expected profits, as well as measures of company-level uncertainty. This paper explores the mechanisms that link investment to sentiment.

This paper explores the determinants of liquidity across households and over time, using a range of household surveys for Australia. The authors find that household liquidity is strongly associated with life cycle factors, such as age and housing tenure.