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Question:
The Australian dollar has appreciated strongly over the past decade, leading to increased concerns over the impacts of the high exchange rate on trade-exposed sectors of the economy”. Examine the underlying drivers of this rise and the implications of various policy options that might be directed at reducing the exchange rate providing empirical evidence (with recent data) to support your argument.
References:
The Australian Dollar and the Manufacturing Sector, Paper prepared by the Department of the Treasury for the
Prime Minister’s Taskforce on Manufacturing. http://www.treasury.gov.au/~
/media/Treasury/Access to Information/Disclosure Log/2012/1204/PDF/FOI-2012-1204-Document01.as

Question Set #174

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