It is also likely, however, that if that were to eventuate, the exchange rate of the Australian dollar would weaken, as it has when the global economy has weakened in the past, providing some cushion for the Australian economy. (c)  Confidence and wealth effects  Confidence and wealth effects are difficult to quantify, but ultimately can be very important in transmitting economic shocks.
As you know the FSC and CBB host two of these conferences every year, the other one with a focus on our international financial services. (The 2015 international financial services conference took place on April 10). Today’s conference comes at a time when the economy has overcome the foreign exchange challenge of 2013 by the decisive budgetary adjustment taken in that year.