But behind the idea that growth needed to ‘handover’ to something else, there also seems to be a presumption that the Australian economy needs a special something – an identifiable engine of growth – for reasonable growth to be possible at all. This view strikes me as being similar to the mindset that the Kellys opposed.
Such systemic risks can originate in any part of the financial system: channels of potential contagion exist both within financial sectors and markets and across sectors and components. Feedback loops between the financial sector and the real economy can also give rise to systemic risk.