dutch disease a threat for aussie economy

AUSTRALIA'S economy is at risk of suffering Dutch disease unless federal and state governments can lessen their reliance on international debt, the Future Fund's David Murray has warned.

"It's quite clear that the crisis was caused by failure of government, because government stood by while easy monetary policy for a long time inflated asset values in markets, beyond sustainable values," he said. "This is a failure of government to understand the realities of financial markets and of fiscal discipline in their own countries. What this says to me is that people elected to political life have far too little an understanding of the limits to debt than they should have; they have far too little an understanding of their responsibilities as elected representatives."

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http://www.theaustralian.com.au/business/economics/dutch-disease-a-threat-for-aussie-economy/story-e6frg926-1226146184803