Australia not immune from the world economic crisis
Friday, November 25th, 2011
SP Newsletter No.381
With the European debt crisis entering a “dangerous new phase” ANZ chief economist Warren Hogan says: “The risk is rising further that these stresses spread outside of European countries, including Australia. Indeed, the two key transmission mechanisms to Australia from this European crisis - China and funding pressures - are now worsening”
As the global financial crisis worsens, its negative effects on the Australian economy are becoming clearer. Despite government statements to the contrary, Australia is not insulated from the crisis by the mining boom.
The mining boom continues, but its exact nature and its effects on other industries are misconstrued by the government. Constant references to the ‘strength’ of the Australian dollar are misleading.










