There has been considerable interest in access rates in Australia since the development of National Competition Policy. This paper provides a framework for analysing the different situations in which access is an appropriate policy tool. It argues that access does not necessarily raise welfare...

Banks use a mix of wholesale and deposit funds to finance lending. If a country is a net importer of wholesale funds, then a financial crisis in a foreign country can 'infect' the banking system by raising the cost of wholesale funds. Indeed, countries such as Australia imported a crisis through...