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Kent: The Resources Boom and the Australian Dollar
I would like to thank CEDA for the invitation to speak here today. I thought I would take the opportunity to talk to you about the implications of the resources boom for the Australian dollar. The past decade saw the Australian dollar appreciate by around 50 per cent in trade-weighted terms (Graph 1).[1] The appreciation was an important means by which the economy was able to adjust to the historic increase in commodity prices and the unprecedented investment boom in the resources sector.[2] Even though there was a significant increase in incomes and domestic demand over a number of years, average inflation over the ... (full story)
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