Australia’s little financial crisis ain’t no mystery

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The propaganda won’t help, either. From the AFR’s Jonathon Shapiro:

Why are Australian dollar funding rates misbehaving to the point where local lenders are paying punitive costs to borrow money?

…when US money market rates spiked up, it became even more expensive to borrow short-term money in US dollars, the Aussie banks turned increasingly to local money markets.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.