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2009-10-17

A strong $A is good for Australian economy

Comments on Michael Stutchbury “Dollar’s push to parity”, 17/10/2009, http://blogs.theaustralian.news.com.au/currentaccount/index.php/theaustralian/comments/dollars_push_to_parity/

Michael, I like a muscular Assie dollar!
While it has a positive effect to insulate the economy from overheating (of course through a negative effect on exporting and a positive cheaper imports), it also has an effect to upgrade the Australian economic structure to a higher and internationally more competitive level, as well as for the corresponding skills of labour force.
That is a long term issue and important for the future.
Forced structural changes by a strong dollar is a good thing.
That will bypass a lot of political interferences by incompetent politicians and bureaucrats.

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