Alan Mitchell in the Weekend Fin
catches up with Ross Garnaut’s “hot and cold economy” theme. Sadly behind David
in The Oz early last week but Mitchell adds the thought that Treasury
(well, Treasury’s David Gruen) hopes for and expects a “process of
consolidation” that is likely to see domestic demand subdued for several years.
“According to the Treasury’s David Gruen, Australia will
have to get its current account deficit down to about 3% of GDP,
compared to the average of 4.5% over the past two decades.” He could
have added, compared to the recent peak of around 7%!

The question that is not asked is
what happens if domestic demand is not appropriately
subdued. There is no link I can find to this
article (why not? is another question), but if you missed it there may be a copy
of the Weekend Fin in your local fish and chip

Read more at Henry