We can now safely claim that the Australian economy has weathered a world recession without itself experiencing one. This is the first time in my experience that such an outcome has occurred, and it must give us confidence in the soundness of our economy.
The announcement of OMT had an extraordinary effect and proved to be a potent circuit-breaker by successfully truncating the most extreme tail of the distribution of possible macroeconomic outcomes and, as a result, financial stability was restored.