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2010-10-19

Dutch disease may not be that serious in Australia

Comments on Michael Stutchbury “Productivity retreat won't ease squeeze”, 19/10/2010, http://www.theaustralian.com.au/business/opinion/productivity-retreat-wont-ease-squeeze/story-e6frg9p6-1225940390023
Our farmers may or may necessarily be hurt by the strong dollars.

It depends on the world price for food.

Isn't it true that the Russian fires and its restriction on wheat exports caused the price to go up? How much a bushel?

High dollar may be actually not that bad after all.

Most of our exports are primary goods and their prices have been high.

The share of outputs from those sectors squeezed may not be that large.

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