Richard Holden, a UNSW economics professor, and Steven Hamilton, an assistant professor at GWU, delve into Australia’s impressive state capacity. They discuss the effective economic interventions during COVID-19, examining the successes and failures of vaccine procurement. The conversation shifts to the complexities of federalism and housing challenges, as well as the need for reforms in unemployment insurance. Holden and Hamilton also highlight the role of local governance in crisis response, advocating for improved strategies to enhance public trust and accountability.