Turnover in the major Australian markets - the foreign exchange, money, equity and derivatives markets - has grown at average rates of more than 20% a year since deregulation. The exception to this rule is the market for government securities, which has grown more slowly than other markets in recent years because of the Government’s run of budget surpluses.
When I think about what we know how macroprudential instruments work, traffic lights come to my mind. To prevent pedestrians from crossing the street when the traffic light is red the authorities actually installed buttons that pedestrians could press to shorten the red phase. And it turned out to be a success: fewer pedestrians crossed the street when the lights were red.