The bloody Aussie dollar just keeps going up. This is not what we need to generate a strong recovery.
As the next graph shows, the Australian dollar plunged in the depths of the crisis back in March. Since then it recovered to its previous levels around the level of 70 US cents, and after the US election it roared upward even more.
Why? It’s a paradox -- one of the kind economics offers up all too often. The strength is partly a consequence of our virus-free status. The Australian economy shapes up as one of the better prospects for growth as we go forward.