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.
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, 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.
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.
The cost to the Australian economy of tackling climate change will increase because of a “late start globally” in efforts to curb carbon emissions, the federal government’s climate change adviser Ross Garnaut said.
Australia’s economy expanded slower than economists forecast last quarter after households boosted savings, suggesting the central bank may need to do more to spur spending as a mining investment boom wanes. The Aussie fell.
Australia, the world’s biggest coal exporter, would “cease to be a drag” on global efforts to tackle climate change if the country introduced a carbon price, the government’s adviser Ross Garnaut said.