So what really did save Australia's economy?

Only one analysis does. We see this when we examine the 2009/10 stimulus packages. The evidence suggests these were critical.

Every developed economy was impacted by the upheavals of late 2007 and following. As markets collapsed and workers were sacked in their millions governments scrambled to understand events and effect a response.

Only one developed nation emerged almost unscathed from that turmoil. Australia had been 12th-ranked economy in the world in 2007, but found itself clear world leader on economic wellbeing by 2010. It has since forged further ahead.

What did Australia do differently from the rest of the world?

Two things. Australia moved swiftly with huge cash handouts to families. While other regimes were wondering what was happening, the Rudd Government shovelled out billions to be spent however households wished.

According to the Organisation for Economic Cooperation and Development (OECD), in the early months of the GFC the Rudd Government gave 3.3% of its GDP to households. Next highest was the USA which allocated just 2.4%. Not enough, it seems. All others were below this, mostly well below. The 34 member nations of the OECD – the grouping of developed, free enterprise democracies – averaged just 0.7%.

Economist David Gruen described this as "an extraordinarily rapid fiscal policy response".

This was followed by even greater amounts spent on infrastructure. No other nation effected this twin strategy – handouts to households first, then building assets – to anywhere near the same extent.

Most governments cut taxes to stimulate their economies. Only Japan, France, Denmark and Mexico joined Australia in giving more money out rather than taking less in. Economists call this spending versus revenue. Of those five, Australia spent by far the most and did so fastest.

The chart – figure 3.2 – from an OECD research paper shows spending levels in light shading and taxes foregone in darker shading. Clearly, AUS third from the left has by far the greatest spending.

The total stimulus – spending and tax cuts – by the USA and South Korea was actually higher than Australia's as a percentage of GDP. But as Steffen Ahrens found, "The mere size of the stimulus does not guarantee success of the fiscal measures". More important is the "choice of the specific actions taken".