But the business cycle has turned down. As well, the productivity growth in the economy is likely to continue, based on investment in information technology and 15 years of policy reforms that have improved economic efficiency across most industries. These days, the Australian economy is quite open to international trade. That makes it a hard climate for Australian companies to sell into, especially traditional markets such as the U.S. and Japan. There are winners and losers, swings and roundabouts, in any exchange rate fall.
Imports become more expensive, helping local manufacturers to compete.
Farmers and businesses who need to replace or update foreign-made capital equipment will see their costs rise. That trip to Disneyland is likely to be put on hold. Again, that's great news for American tourists who chomp burgers and stay in luxury hotels-and to Australian exporters of beef. Two decades of economic reform have made Australia more fleet of foot, while the speed of the game now is faster and more volatile. Policymakers can't afford to stray from the course that earned them such high praise when the Asian region was in trouble.