It is also interesting to note that the relationship between inflation and money growth is particularly close for high-inflation countries, as illustrated in a book co-authored by one of our distinguished guests, Chairman Bernanke. These findings are, of course, important and consistent with theory.
There has been very little borrowing associated with the investment spending, and to the extent that there has been any, it has generally been directly from capital markets rather than intermediated through the banking sector. Another important aspect of the financing is that it has constituted a sizeable capital inflow for the Australian economy.