Is the high Aussie dollar really bad for the Australian and Victorian economies?
John Daley, Grattan Institute CEO, spoke to an Economic Society of Australia event at the University of Melbourne on the high dollar as part of a panel with Professor W. Max Corden of Melbourne University and Ross Gittins from the Sydney Morning Herald. The presentation covers aspects of the high dollar controversy including:
What is the contribution of the terms of trade, domestic interest rates, and global risk aversion to the current value of the Australian dollar?
What are the impacts on industry mix and activity across Australia and in Victoria?
What are the policy options and what should policy makers seek to achieve?