Considering the economic and financial crisis at the moment, some are confident that Australia can manage the situation. The long-term effects have altered significantly to what Australians were thinking, but it’s not certain, it will depend on the country’s investment on productivity-increasing innovation and reform and getting the right balance on regulation, says Glenn Stevens, RBA governor. Things may get worse soon, but it will get better from there. The household sector’s gross debt servicing burden has been reduced by RBA’s recent interest rate cuts by nearly 3% of household income. In future, households will become more cautious with debt.