Can Australia afford to have a stronger dollar? Exporters are already complaining that they are hurting companies accelerating moving production offshore. I reiterate that no western economy wants a rising dollar it makes us less able to compete with countries that have much lower labour costs and accelerates the movement of jobs and industries overseas. Higher rates would also retard the ability of australians to consume, consumption is increasingly what our economy is based on. Rising interest rates much further would almost certainly end in recession.
