This paper examines whether it is more expensive to own a house or to rent. The paper assesses houses as ‘overvalued’ if home buyers pay too much, in the sense that they would be better off renting than buying. This involves comparing the financial cost of renting a home with the cost of owning a...

Global financial conditions have improved significantly since the previous Financial Stability Review, despite the new uncertainty created by the proposed sovereign bailout for Cyprus in the past few weeks. Some earlier European policy initiatives had been seen as demonstrating a strong commitment to deal with the region’s sovereign debt and banking sector problems while maintaining...

This paper examines the resource economy, including both resource extraction and value added of industries that provide inputs to resource extraction and investment, such as business services, construction, transport and manufacturing.

The recent Global Financial Crisis has generated more cautious spending amongst Australians with many now prefering to pay off home loans and mortgages and focussing more on saving rather than spending. In the period since the previous Financial Stability Review, global financial conditions have evolved in two distinct phases. The sovereign debt problems in the...

Australia’s macroeconomic performance during the decade was much more stable than during the earlier mining booms, reflecting a stronger institutional framework.