_ may16. pdf >. 2 see < www. bis. org / press / p150511. htm >. 3 see < www. bis. org / mktc / fxwg / am _ may16. pdf >. see also c salmon ( 2016 ), ‘ rebuilding trust through the ‘ fx global code ’ : reasons for optimism ’, available at < www. bankofengland. co. uk / publications / documents / speeches / 2016 / speech924. pdf >, speech given at the aci uk square mile debate, london, 7 september ; and s potter ( 2016 ), ‘ the role of best practices in supporting market integrity and effectiveness ’, available at < www. newyorkfed. org / newsevents / speeches / 2016 / pot160907 >, remarks at the 2016 primary dealers meeting, federal reserve bank of new york, new york city, 7 september. 4 see < afxc. rba. gov. au / news / afxc - 26052016. html >. 5 see < www. bis. org / press / p160526a. htm >. 3 / 3 bis central bankers'speeches

a chance on a new product, a new investment or a new worker. in the case of households, according to surveys sentiment is neither particularly weak nor particularly strong at present. it is reasonable to expect that households will play a role in driving demand over the years ahead – and in due course that will help to lift business confidence. but in thinking about that role we need to understand the ways in which household behaviour has changed. the credit boom the title of this talk, “ economic policy after the booms ”, uses the plural quite deliberately. there were two “ booms ”. before the mining boom, or at least before its full flowering from about the middle of last decade, there was an earlier boom. it was global, but australians took part in it. i am referring of course to a boom in credit, which saw a very significant increase in borrowing by households in particular, and a rise in asset values, especially dwellings. this was associated with a lengthy period of unusually strong growth in consumption. bis central bankers ’ speeches this boom did not end in australia as painfully as it did in some other places, but end it did. consider two charts i showed at the anika foundation lunch two years ago in july 2011. these have been updated, and use revised data. 5 graph 1 graph 2 the level of household financial assets from june 2002 has been revised almost 15 per cent higher on average, predominantly reflecting upward revisions to estimates of households'holdings of unlisted equity. as a result, the debt - to - assets ratio has been revised lower by 0. 8 percentage points on average. trend growth in household assets was also revised slightly lower. in contrast, growth in household disposable income was revised slightly higher, leading to a small upward revision in the saving ratio in the 2000s. bis central bankers ’ speeches it is even clearer now than it was two years ago that the behaviour of households has changed in a very important way. real consumption per person had risen faster than real income per person for 30 years, from the mid 1970s until about 2005. ( only the last third of that period is shown here. ) that changed some years ago now, and after a noticeable fall in consumption in late 2008 and early 2009, spending and income have grown roughly on parallel tracks. since 2009, trend growth in per capita consumption has been about 1. 4 per cent per annum, half what it had been from 1995 to 2005. one contributing factor is seen in the second of the