On Bank Instability: A Final Reply to Neal

On Bank Instability: A Rejoinder

“…My interpretation of his view is that both these factors mean that Australian banks do not have fragile balance sheets. If the former is true, monopoly control of the note issue should not have been an issue as in Coombes (1999). If the latter is true (and I don't believe it to be so), there is no need for the prudential regulations imposed by APRA.…”