Great essay. Thanks for the reminder about the financial system aspect. I vaguely remember reading an analysis (probably before covid) that noted that possibly an Australian bank was technically insolvent and not meeting its reserve requirements or more than one bank was close to the brink. The analysis looked at the reserve bank balance sheet or flows in and out or something like that and determined something fishy was going on. It couldn’t determine if it was one bank or multiple banks because the data was aggregated but something didn’t balance. I’ll try to track down the report. The article was from an independent news outlet, possibly the The West Report or similar.
Happy New Year!
Great essay. Thanks for the reminder about the financial system aspect. I vaguely remember reading an analysis (probably before covid) that noted that possibly an Australian bank was technically insolvent and not meeting its reserve requirements or more than one bank was close to the brink. The analysis looked at the reserve bank balance sheet or flows in and out or something like that and determined something fishy was going on. It couldn’t determine if it was one bank or multiple banks because the data was aggregated but something didn’t balance. I’ll try to track down the report. The article was from an independent news outlet, possibly the The West Report or similar.