Economy

Dec 6, 2012

The A$ winner’s curse: welcome to the economy’s new normal

Welcome to the new normal: where the Aussie dollar is high, interest rates are low and Australia seems like the safest investment going around (even if Joe Hockey tried to terrify investors).

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

Suck it up Australia (especially the headline-seeking economic chatterers) and get used to what’s remaining for the years ahead: a high dollar, trend economic growth, sluggish employment, low interest rates and a misplaced feeling that things could be better.

This isn’t Crikey talking, its the Reserve Bank again telling us the reality of the country’s economic performance. According to yet another speech from a senior RBA official, this time deputy governor Phil Lowe in Sydney last night, what we have been experiencing is the “new normal”:

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2 comments

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2 thoughts on “The A$ winner’s curse: welcome to the economy’s new normal

  1. Chess C

    Glenn – please read “This Time is Different” by Reinhart and Rogoff, and “And the Money Kept Rolling In” by Blustein. In every instance of history, the foreign lenders do eventually stop sending money and consequences can be dramatic.

  2. Phen

    The dollar rose to US$1.460?!? Now that would be a crisis!

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