But most of the traction in terms of borrowing rates in Australia is at the short end of the curve rather than the longer end of the curve, which might reduce the effectiveness of QE. The RBA's balance sheet can also expand to help reduce upward pressure on funding, if necessary, as occurred in 2008.
10  For more on how supply-side policies can empower demand-side policies see speech by Cœuré, B. on “Structural reforms: learning the right lessons from the crisis”, Riga, 17 October 2014. 11  For an illustration see Eggertsson, G., A. Ferrero, and A. Raffo (2014), “Can Structural Reforms Help Europe?” Journal of Monetary Economics, 61. 12  Bouis, R., et al.