This has been an ongoing topic of discussion among the world’s central banks and financial commentators, as people try to understand whether this trend is sustainable, what it means for the performance of economies and what it means for financial stability. I would like to touch on some of these issues today, particularly as they relate to Australia.
Some facts Let me start with a few facts. This first graph shows two statistics for a range of developed economies: -  the orange bars are the annual average growth in credit over the past 30 years; and  -  the purple bars are the annual average growth in nominal GDP over the same period.