Devalueing the currency simply means inflation and in Australia's case, rapid inflation because before exporters get the money in the till, importers will have jacked-up prices. Even at currently high resource prices we have a trade defict which will increase inflation further.
Consumers with current disposable income could not stand a bout of inflation it would send send interest rates up by at least 2% within a year; thats $4k/year extra on a $200K mortgage.
We simply have to work smarter and more efficiently rather than rely on a lazy Zimbabwe strategy of knocking the bottom out of our dollar.
If we go back to the AUD being worth 60c US then we'll be paying 2 bucks a litre for our petrol and $22K for the Hyundai I10 and over $1000 for an I Pad.
Will the businesses who benefit from a low $ pay another $150/week. I dont think so. Cheers moorookamick
