Australian entities are able to issue debt in our own currency and when they choose to issue in foreign currency, they are able to remove the exchange rate risk by using the foreign currency swap markets. Exchange rate pass-through is fairly muted and inflation expectations are well anchored. To pick up a point in Sebnem Kalemli-Ozcan’s paper, the institutional structure in Australia is strong.
So, to end on a positive note, Australia’s experience is a useful reminder that even when there are large shifts occurring in the global economy, it is possible to prosper as a small open economy with a floating exchange rate and flexible inflation target. Thank you. 6/6  BIS central bankers' speeches