RBA Warns Australia of Shock-Prone Financial System as 1648-to-Bretton Woods Order Frays
Updated
Updated · Bloomberg · Jun 17
RBA Warns Australia of Shock-Prone Financial System as 1648-to-Bretton Woods Order Frays
3 articles · Updated · Bloomberg · Jun 17
Summary
Australia’s financial institutions should prepare for a more shock-prone system as geopolitical strains reshape global financial and economic linkages, RBA Assistant Governor Brad Jones said in Melbourne on Wednesday.
Jones argued that shifts in the global order feed directly into financial stability, using history from the 1648 Peace of Westphalia to the post-World War II Bretton Woods framework to illustrate the link.
He said a relatively quiet period after the Cold War has given way to renewed tensions between power blocs and states, increasing the risk of shocks hitting markets and institutions.
The warning signals that the RBA sees financial resilience and readiness to respond as increasingly important as geopolitical fragmentation alters the backdrop for Australia’s economy.