Australia Dollar Should Devalue By 40% To Stay Competitive [REPORT]

Ross Garnaut, noted economist, feels Australia’s dollar may need to fall by 40 percent to stay economically competitive. The former government advisor’s prescription would mean Australia would need a U.S. dollar exchange rate around the US 70¢ mark, or still lower, implying a 40 percent slump from the current level. Former Prime Minister Bob Hawke’s economic advisor, Ross Garnaut, during his interaction on Channel Nine told Financial Review Sunday that such as fall would be necessary for Australia’s non-resource sectors of the economy to regain competitiveness. Hugh Hendry, in the latest performance letter of Eclectica Fund, also feels Australia seems…