Australia’s dollar, the world’s best- performing major currency of the past decade, may need to slump 40 percent to restore economic competitiveness as a local mining boom ends, said former government adviser Ross Garnaut.
The Australian dollar needs to weaken “by a large amount” to restore competitiveness eroded by two decades of prosperity, according to Ross Garnaut, who advised former Prime Minister Bob Hawke during the 1980s overhaul of the nation’s economy.
Australia, the fourth-largest wheat exporter, risked more climate-change damage than other developed countries partly because of the threat to its agriculture, said Ross Garnaut , the federal government’s adviser on the topic.
Architects of the float of Australia’s dollar, trading at a similar level to when exchange controls were lifted 30 years ago, say the currency must devalue and economic reform be renewed to avert a recession.
Australia can shutter carbon intensive coal-fired power plants in Victoria state, limiting operations to when demand for electricity surges during summer, government climate change adviser Ross Garnaut said.
Australian climate-change adviser Ross Garnaut says a carbon price of A$26 ($28) a metric ton may raise about A$11.5 billion in the first year if planned laws aimed at curbing emissions are introduced.