The fact that the RBA is holding some bonds makes no difference to the financial obligations of the government, other than through a lower cost of finance. The Australian Government and the states and territories continue to fund themselves in the market, as they should. Raising funds in the market is an important discipline and movements in market prices can contain valuable information.
Second, the ten acceding countries have undergone a remarkable economic transformation in the past decade, with high growth rates; inflation rates that are close to the euro area level; with relatively stable exchange rates; falling long-term interest rates and a gradual catching-up in terms of real incomes.