In the Australian Financial Review, Queensland Investment Corporation's chief economist Matthew Peter says the current pressure on the Reserve Bank of Australia to use interest rates to steer Australia's transition from mining-related growth could lead to bigger and more counterproductive economic imbalances than those that already exist
- Says it is a 'potential risk'
- Has concerns over a volatile currency and over-investment in real estate and service export industries like tourism and international education
- Says the federal government could help by spending more on mainly transport-related infrastructure, to promote a healthier mix of monetary and fiscal policy
- "Infrastructure expands the capacity of the economy, provides strong economic multipliers and assists the economic transition by absorbing construction and engineering workers released by the mining industry"
Article is here, but it may be gated: Federal budget 2015: 'Toxic' policy mix risks creating boom-bust cycle, says QIC economist
