Henry Thornton expresses his opinion on the grim state of the Australian economy:
The Reserve Bank is widely expected to cut interest rates today. The economy is facing such a grim future that one can support such an outcome. But no-one, not even the Reserve Bank, is facing the main problem facing Australia, which is double-digit cost disequilibrium – a severe lack of international competitiveness.
Just like Treasury’s failure to be ahead of the curve in forecasting, the Reserve Bank’s apparent failure to understand our most important economic problem is bad news for all Australians….
Read more at Henry Thornton – The recession we did not need to have.
Hat tip to Houses & Holes at Macrobusiness.com.au.