While previous terms of trade booms have tended to be short lived, there are reasons to believe that the current boom could be more enduring. This paper considers the implications for the Australian economy in the event that recent rises in the terms of trade are sustained, with a focus on labour market, industry and...

In recent years, employment has grown strongly while output has grown modestly. This implies a weak growth in labour productivity that is difficult to interpret. This article explores some possible explanations for recent economic growth and labour productivity outcomes, with a focus on developments in the composition of growth. It also examines whether recent productivity...

Economic reforms of the recent decades have helped improve Australia's productivity level relative to the United States and narrow the productivity gap, and additional reforms could help narrow the gap further. But in the long run, according to Graeme Davis and Jyoti Rahman, Australia's productivity growth will be primarily determined by technological progress at the...