The conference, held at the beginning of October, included presentations on a wide range of issues. I was particularly interested in a presentation given by NAB Chief Economist Alan Oster on the impact on Australia of the income effects of very high commodity prices and the one-in-100-years terms of trade boost. This included the development of a two-speed-or even three-speed —economy. Currency appreciation, labour pressures and other factors linked with the ongoing success of the resources sector are squeezing manufacturing, tourism and other industries. So, while the petroleum and mining sectors are growing, other parts of the economy—notably manufacturing —are languishing.
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