What is it about?
Explains the economic effects of Australia's mining boom
Featured Image
Why is it important?
People misrepresent the economic effects of Australia's mining boom. Understanding the economic consequences helps avoid the pitfalls in 'Dutch disease" economics, prevalent in many commodity-exporting countries.
Perspectives
Interestingly, Australia's latest mining boom coincided with a jump in Australia's savings rate (caused by the Global Financial Crisis) so much of the massive investment that was stimulated by the high price boom was funded from domestic sources, compared to what might have happened had the savings rate not changed. Given price booms are followed by slumps making countries vulnerable to debt service problems, the GFC may have 'saved' Australia!
Dr Andrew B Stoeckel
Australian National University
Read the Original
This page is a summary of: Comment 2 on ‘Booming sector economics’ by Freebairn, Australian Journal of Agricultural and Resource Economics, October 2016, Wiley,
DOI: 10.1111/1467-8489.12186.
You can read the full text:
Contributors
The following have contributed to this page
