Dutch Disease

Coal in Australia: A broader view of costs and benefits

Harvard economics Professor David Glaeser has an interesting editorial on the role of mining in Australia, published yesterday by Bloomberg.  The basic thrust of his argument is that capital-intensive coal and iron ore industries dominate Australian exports, but harm long-term competitiveness.  He mentions two main causes.  The first is the role of natural-resource-led exports bidding up the value of Australian dollars (sometimes referred to as the "Dutch Disease"), making it more difficult for other sectors to be competitive.  This dynamic is important, but is not particularly novel:  it h

Subscribe to Dutch Disease