The latter point, of course, is relevant to our weak current account and associated high levels of external indebtedness. Those are all criticisms that the Reserve Bank takes seriously. Our recent research programmes have focused on reviewing the experience of the past business cycle to both uncover and describe the stylised facts, and to analyse the key drivers in that cycle.
We need to be able to think about behavioural issues, financial frictions and macroeconomics inside a common set-up. Central banks also need economists trained to think along all of these different dimensions and able to tackle the substantial degree of complexity posed by these problems, which should be part of the curriculum.