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Business as usual is not too bad

Comments on Henry Ergas “After the GFC, it's business as usual”, 9/04/2010, http://www.theaustralian.com.au/news/opinion/after-the-gfc-its-business-as-usual/story-e6frg6zo-1225851577496

This is a good piece, though also with some shortcomings of its own, as most cases are - perfection rarely exists.

The criticism on "proposed global cures of high cost and dubious efficiency" is well and correctly made.

The argument of the Chinese currency ignored the fact that it is not just an issue of trade, but also an issue of assets values. That is additional complexity to the Chinese currency issue that most commentators and analysts have yet to properly and adequately take into their considerations.

While it is probably a step too far to criticise the role of government in managing the economy, Henry Ergas has got a good point that liberalisation, incentives and the market do play a far more significant and useful role than Rudd derided they had been in his economic essay last year.

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