In its typical format, with vacancies on the vertical (y) axis and unemployment on the horizontal (x) axis, the curve slopes downward, as a higher rate of unemployment normally occurs with a lower rate of vacancies. Data points are expected to move up and down the curve along with the business cycle.
The Australian RMBS market was significantly affected, even though (as already discussed) lending standards were much better in Australia, and the RMBS continued to perform well. Issuance dried up markedly (Graph 6). Most of the issuance during late 2008 and the first half of 2009 was purchased by the Australian Government through the Australian Office of Financial Management.