The Sub-Prime Crisis Down Under
13 Pages Posted: 9 Dec 2015
Date Written: December 3, 2015
The sub-prime crisis which emanated from the USA in 2007 has had profound effects around the world and is providing new insights into financial interlinkages and risk management issues. This paper examines the effects of the sub-prime crisis on the Australian financial sector with three objectives in mind: 1) to provide a concise, but comprehensive, overview of these effects for readers interested in understanding the impact of the sub-prime crisis on an economy outside of the USA; 2) to identify the main channels of transmission of effects; and 3) to identify lessons learned from the current experience for risk management strategies of financial institutions, corporations, and monetary/prudential authorities.
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