Sunday, September 19, 2010

The paradox of mining

From an excellent new RBA paper Structural Change in the Australian Economy by Ellis Connolly and Christine Lewis.

Mining isn't much changing what we do:

But something is making the mining states more important:

The whole thing is excellent reading.

As is a magnificent paper on Interpreting Market Responses to Economic Data:

"It is interesting that the Australian equity market is more responsive to US inflation and employment news than to Australian employment news."

And a great primer on Economic Change in India.

They are all here.

Related Posts

. We're earning more without doing more - Reserve

. Reserve backs just about everyone else - stimulus stimulates

. Good for some. The Reserve Bank sees two Australias.


carbonsink said...

It seems we're all moving into social services according to chart 2.

The paper suggests that the growth in services has been overstated because much of it is actually out-sourcing by goods-producing industries. Thank heavens for that, because I struggle to comprehend how an economy consisting entirely of people providing services to each other (or providing welfare services) can generate real wealth, especially when all our goods are imported. Sure, we might export services as well, but that sector is getting smashed by the rampaging Australian dollar.

Where would we be without dirt? How would we pay for all those flat screen tellies, iPads and Beemers?

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