Taken together, regulatory factors can to some extent explain why some investors seem relatively price-insensitive with regard to their demand for safe short-term government bonds. This can best be seen by those who do have an economic alternative: euro area banks with access to the deposit facility.
Introduction I would like to thank the Queensland branch of the Economic Society of Australia for hosting this event. It is a pleasure to be back here to discuss the economic transition in China. This topic is important for the Australian economy, where economic activity is rebalancing toward non-mining sectors following the end of the commodity price boom. Indeed, this process is well advanced.