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2009-10-21

Ways to deal with Dutch disease

Comments on Alan Kohler “Brazilian whacks”, 21/10/2009, http://www.businessspectator.com.au/bs.nsf/Article/Brazilian-whacks-pd20091021-WZRHV?OpenDocument&src=sph

There are indeed better ways to deal with Dutch disease.

One way is for the RBA to buy foreign currency and use that currency to buy suitable overseas investments like various securities with high liquidity.

Another way is to use that currency to provide loans to borrowers who need that currency.

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