In Australia, economists spent the last decade watching China's rapid industrialization. Now...we all watching the painfully slow recovery in China.
As for the central banks of the major economies - being major means that all of their monetary policies are transmitted via financial markets to the rest of the world.
Which takes us to Australia's monetary conditions - we are not isolated, the cost of government borrowing is record low and the economy is bumping along the bottom. The 3yr real yield after inflation is -0,4% and the 10yr is 01% - the RBA, treasury and the government is well aware of this.
