That framework suggests several questions we might ask for Australia and its regions:   How different are the shocks by region?   How flexibly does the economy respond to such differences? 4  BIS Review 119/2010    What other policy mechanisms are at work to respond?
  And finally, how different, ultimately, are the experiences after these responses have occurred? Differences across the country It is worth observing that not all “shocks” that hit the economy have markedly different effects by region or industry. Some of them are fairly widespread in their effect. Take the sudden intensification of financial turmoil in September 2008.