450. butlin ng ( 1964 ), investment in australian economic development 1861 – 1900, cambridge university press, london. butlin ng ( 1985 ), “ australian national accounts : 1788 – 1983 ”, australian national university source papers in economic history, 6. butlin ng ( 1986 ), “ contours of the australian economy 1788 – 1860 ”, australian economic history review, 26 ( 2 ), pp96 – 125. butlin mw ( 1977 ), “ a preliminary annual database 1900 / 01 to 1973 / 74 ”, reserve bank of australia research discussion paper no 7701. doran cr ( 1984 ), “ an historical perspective on mining and economic change ”, in lh cook and mg porter ( eds ), the minerals sector and the australian economy, george allen & unwin australia, sydney, pp37 – 84. eichengreen b and i mclean ( 1994 ), “ the supply of gold under the pre - 1914 gold standard ”, the economic history review, 47 ( 2 ), pp288 – 309. foster ra ( 1996 ), “ australian economic statistics 1949 – 50 to 1994 – 95 ”, reserve bank of australia occasional paper no 8, revised. freebairn j ( 1987 ), “ natural resource industries ”, in r maddock & i mclean ( eds ), the australian economy in the long run, cambridge university press, melbourne, pp133 – 164. gregory r ( 1976 ), “ some implications of the growth of the mineral sector ”, the australian journal of agricultural economics, 20 ( 2 ), pp71 – 91. gregory r ( 1978 ), “ some observations on the relationship between the mining industry and the rest of the economy ”, ceda policy forum “ dollars for minerals and energy ”, 8 / 11 / 78. gillitzer c and j kearns ( 2005 ), “ long - term patterns in australia ’ s terms of trade ”, reserve bank of australia research discussion paper no. 2005 – 01. haig b ( 2001 ), “ new estimates of australian gdp : 1861 – 1948 / 49 ”, australian economic history review, 41 ( 1 ), pp1 – 34. mckenzie i ( 1986 ), “ australia ’ s real exchange rate during the twentieth century ”, the economic record, 1986 supplement, pp69 – 78. maddock r & i mclean ( 1984 ), “ supply - side shocks : the case of australian gold ”, the journal of economic history

for the british investors, much of this money was never repaid in dividends, an indication of the risks that can be involved in mining investment. the main part of this boom took place against a very subdued economic background, both in australia and in the major economies. the financial collapses that occurred after the bursting of the 1880s property bubble had led to a global depression with very large falls in output and high unemployment. the continuing effects of that financial collapse meant that this boom, somewhat unusually, was not accompanied by a sharp acceleration in money supply growth. similarly, the large amount of spare capacity in the economy meant that there was significant deflation at the start of the boom, which limited the subsequent peak in inflation. there were some pressures on wages as the unemployment rate fell sharply from the very high levels of the early 1890s, and there were signs of rising industrial disputation. the real exchange rate, however, did not move much through this episode. 13 the current account, which had moved to a very large deficit during the 1880s property bubble ( 13 per cent of gdp ) moved back to a more normal small deficit in the 1890s, and eventually into surplus when the mining boom ended and the economy slowed in the early 1900s. 14 the inter - regional effects of the boom, as in the 1850s, were very powerful. there were strong flows of labour to the new mine sites. the population of western australia increased from 48 000 to 180 000 during the 1890s ; and the population of broken hill grew from 6 000 in 1888 to almost 20 000 in 1891. charters towers had its own stock exchange. 15 there were also significant shifts in industrial composition. exports of wool and grains stagnated and metals took over as australia ’ s leading export. 16 eventually, the combination of rising costs and falling profits meant that capital dried up, investment fell, and the boom ended. some of the policy actions taken at that time – such as the imposition of tariffs to protect urban industries – had powerful long - run influences. 17 ( c ) the 1960s / early 1970s boom the third boom was that in the 1960s / early 1970s. this boom was quite broadly based, but the key parts were sharp increases in mining of coal and iron ore, and the development of oil and bauxite discoveries. the background to this boom was that both the global and domestic economies were becoming increasingly stretched, with rising commodity prices and rising inflation more generally. particularly important for australia during this period was the economic development of japan.