The Australian economy has been one of the most resilient in the OECD during the global economic and financial crisis. The impressive results, which are only partially due to links to fast-growing China and India, have shown that the economy was well-prepared to face major shocks. Years of sound policies left ample room for monetary and fiscal policy to act rapidly and forcefully when the crisis struck. A key to the good outcome was the interaction of appropriate macroeconomic policy with structural flexibility of markets, especially financial and labour markets. The strong policy response and encouraging outlook restored confidence rapidly, and exit from the stimulus is underway.