The Australian Centre for Financial Studies has put together a very interesting and timely body of work on an important topic.1 It is a good example of a collaborative effort that encompasses academic research with a very applied focus. The financial sector plays a unique role in the functioning of the economy.
It acts as the intermediary between the myriad saving and spending decisions of households, businesses and government, both domestic and foreign. In doing so, it is unlike other parts of the economy.