It's a fitter economy, says Henry

aug 07 smh

Reflecting on the postwar terms of trade shock of the 1950s which saw inflation soar to 20 per cent, Dr Henry said today's economy was better equipped to adapt to rising commodity prices.

"There can be little doubt that reforms have improved the prospects for economic growth and well-being more generally," he said.

Central to this had been the rejection of protectionist trade policies, which had opened Australia's borders to increased trade and enabled resources to flow to the most productive industries. As a result, the proportion of the workforce in mining and construction had this year overtaken the share in manufacturing - both at about 10 per cent.