Dog days have arrived for the Australian economy

By Leith van Onselen

Professor Ross Garnaut, whose book released last year entitled Dog Days: Australia after the Boom predicted a prolonged period of falling living standards unless Australia raises productivity and boosts competitiveness by lowering the real exchange rate, has returned proclaiming that “regrettably the dog days scenario [outlined in my book] is playing out very much”. From The AFR:

“We’ve got a longer period of grind: of falling real per-capita incomes; of underperformance of employment before we get the economy growing at a rate that will start to deal with the unemployment problem”…