Walking the path to the next global financial crisis
This report argues that failing to prepare now for the next financial crisis could destroy New Zealanders’ nest eggs and threaten their livelihoods.
Uncertainty and monetary policy during extreme events
How damaging are uncertainty shocks during extreme events such as the great recession and the COVID-19 outbreak? Can monetary policy limit output losses in such situations? This paper outlines economic modelling for policymakers.
Can this time be different? Policy options in times of rising debt
Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. This paper examines the factors that are likely to determine the outcome of the most recent debt wave, and considers policy options to help reduce the likelihood...
Managing economic risk in Asia: a strategy for Australia
Twenty years on from the Asian Financial Crisis, this paper assesses how the region is placed to manage and mitigate risks of economic crisis, and considers Australia’s role in this.
Australian Prudential Regulation before and after the Global Financial Crisis
This paper reviews the nature of Australian bank prudential regulation before and after the Global Financial Crisis (GFC). It begins by providing a detailed conceptual framework for understanding the functions of banks and deposit-takers, the theory of what can go wrong with the operation of...
Regulatory Independence - It's not just about institutions
Financial regulators perform inter alia a quality control function, as they search for recession-generating flaws in the financial system. Some groupings of regulations operate more or less independently to other groupings, as is the case when different agents – not necessarily different institutions – examining...
Regulation, competition and banking markets
Banks use a mix of wholesale and deposit funds to finance lending. If a country is a net importer of wholesale funds, then a financial crisis in a foreign country can 'infect' the banking system by raising the cost of wholesale funds. Indeed, countries such...
Australia's experience in the sub-prime crisis
The sub-prime crisis shows that it is not enough for Australia to regulate its own financial system well, according to this paper. It is also in Australia’s interests to work towards forms of global coordination, global monitoring and global crisis response which lessen the frequency...