MYEFO day one: Iron ore crashes below outlook

Tuesday, 20 December 2016

From the AFR:

It was the $25 billion gift Scott Morrison decided was too good to be true.

Had Treasury stuck to its usual practice of assuming commodity prices would remain at the levels they averaged over the four weeks leading into the budget update, it would have assumed the economy would be $100 billion larger over four years.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.