Many of you would be aware that ESSA is hosting a Q&A event on the evening of Thursday August 16th, where our brilliant panel will be answering questions on immigration and the two-speed economy. In honour of Q&A, I have decided to continue my series on structural changes (read the first installment here) with an analysis of the two-speed economy. This article attempts to provide a snapshot of the key issues surrounding our two-speed economy and the main policy implications. I also consider some of the potential questions that our panel may be forced to contend with on the night!
terms of trade
Part 1 – The Modernisation of China, Our Commodities Boom, and Structural Adjustment.
This article is the first of a series of macroeconomic analyses which I’ll be conducting on the changing structure of the Australian economy. In recent years, economic commentators and policymakers alike have been uttering the words “structural change” faster and more often than the RBA can say: “At its meeting today, the Board decided to…” As this term is likely to remain on everyone’s lips in the foreseeable future, it’s high time to make sense of it. We’ve all heard statements being thrown around like “once-in-a century terms of trade”, “two-speed economy”, and even “Dutch Disease”.