Graph 7  While monetary financing is not an option in Australia, the Reserve Bank Board continues to review overseas experience with other monetary options. We had another discussion on this at our meeting two weeks ago. Central banks around the world have all moved in the same general direction, but they have configured their monetary support packages differently.
When such inconsistencies appear, the confidence in the sustainability of the regime is lost, and the attack by market participants is immediately unleashed. The sudden stops in capital flows in some European countries provoked steep increases in sovereign and financial institutions borrowing costs and CDS spreads.