And, most certainly, there was no need for the recent financial market turmoil to drive home that point. I have chosen two topical questions to guide me in my following remarks: First, what are the underlying causes of the recent financial market turmoil? Second, how can central banks help avoid disturbances in the financial system?
In Australia it was a big factor after 1992;  2  With the fall in nominal interest rates, a big front end loading problem in servicing the conventional mortgage was eliminated. See http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_oct97/bu_1097_6.pdf.