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Years too late but at least on the right territory (which puts him ahead of most), Alan Kohler today discovers Australia’s real economic challenge:
Friday’s October payrolls report seemed to entrench the rut that the American economy is in: unemployment is falling but wages aren’t rising. It means the US dollar will keep going up but inflation is not going with it.
It’s difficult to overstate the importance to Australia of what’s going on. In essence, low wages growth and inflation elsewhere in the world could rob Australians of the benefits of a falling currency.
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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.
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