Coombs was born in Kalamunda, Western Australia, one of six children of a country railway stationmaster and a well-read mother.

That was deferred for a year, enabling him to graduate M.A., also from UWA, and to marry fellow teacher Mary Alice ('Lallie') Ross at the end of 1931.

He became known as a Keynesian rebel against the classical economics theory that had dominated the Treasury, under the influence of the Melbourne University school of economists, led by L. F. Giblin and Douglas Copland.

[1] The Australian Labor Party under John Curtin came to power in 1941, and Coombs found himself in a political environment much more supportive of his views.

Coombs's closeness to Chifley and the greatly expanded role of government in the economy during World War II made him one of the most powerful public servants in Australian history.

In January 1949, Chifley appointed Coombs as governor of the Commonwealth Bank, the most important post in the regulation of the Australian economy.

When the Liberal Party came to power in December of that year, however, Coombs's demise seemed likely, but the new prime minister, Robert Menzies, kept him on and soon came to trust his judgement.

Menzies was a moderate Keynesian, and there were few policy differences between the two men, especially since Australia soon embarked on a long postwar boom, and hardly any tough economic decisions needed to be made.

At the time, he paid tribute to Sir Leslie Melville by advising the government and others that the best man for the job had been overlooked.

[4] He worked closely with Prime Minister John Gorton to secure funding for an Australian film industry.

Although he regarded the dismissal as scandalous,[citation needed] his estrangement from Whitlam meant that he took little subsequent part in politics.

The Liberal government of Malcolm Fraser largly ignored the recommendations, focusing on reducing the size of the Public Service and introducing accountability mechanisms.

[15] During the Howard government administration, the "Coombs legacy" in Aboriginal affairs came under increasing criticism from conservative thinkers.

[18] In a June 2009 article in The Monthly, journalist Fiona Capp revealed the story of the 25-year secret love affair between two of Australia's most well-known and well-loved public figures, "the famous poet-cum-activist" Judith Wright and "the distinguished yet down-to-earth statesman" 'Nugget' Coombs.