Jeez, two months is a LONG time in Australian public life. From RBA board member, John Edwards today:
“I would prefer a lower currency and it does pose some problems for us,” John Edwards said in an interview yesterday. “But I don’t think they’re at all, at this point, the kinds of issues that require us to make a response.”
The manufacturing and tourism sectors have fared better than RBA policymakers had expected, Mr Edwards said, while the exchange rate itself had forced local companies to become more efficient and competitive.
Does anyone recall the John Edwards of late January?
AUSTRALIA must fast-track new roads, railways, bridges and ports to secure prosperity as the mining boom fades, key members of the Reserve Bank have warned.
…In an interview with The Courier-Mail, central bank board members Heather Ridout and John Edwards said investing in key urban projects would unlock a new cycle of productivity to replace the commodity price boom and continue the 21-year run of growth.
Ms Ridout said short-term considerations had led to under-investment and were holding the nation back. She called on state and federal governments to go into deficit to fund the infrastructure.
“We have under-invested. Congested roads in cities are a major sign that we’re not doing well enough,” Ms Ridout said.
“We just keep putting short-term considerations before the real work of building a productive economy.”
Dr Edwards…warned Australia faced challenges including a high dollar and an ageing population.
“The big investment boom in mining, which has helped the economy over the last six years, is close to a peak,” Dr Edwards said.
Success from now on would “take substantial investment in factories, offices and mines, roads, bridges, ports, railways, broadband and, above all, in education and training.”
Dr Edwards said the National Broadband Network was the most important piece of infrastructure on the table.
“Australia’s future will increasingly depend on our success not only in exporting minerals and farm products, but also clever manufacturers and high-value services.”
…Dr Edwards said he remained hopeful Australians could successfully transition from a commodities boom to a high skills boom. “It won’t be easy, but it can be done. The last twenty five years have shown us that.”
Can someone please explain to me how things have improved so dramatically from late January for manufacturing and tourism? Manufacturing capex has collapsed to mid 1980s levels and tourism has gone nowhere.
So, another voice of sanity bites the dust. Either Edwards has been wrapped on the knuckles by Captain Glenn or he has decided that discretion is the better part of valour with an incoming Coalition government.
Just one question. What have they with the good twin? REDRUM!
