1. Australia has performed quite well over the last two decades in terms of real GDP per head; the GDP gains have not been fully reflected in other economic welfare measures (section 1). 2. Most economic reforms have important distributional effects, and these are often prolonged and enduring....

The theme of my paper is that, provided the terms of trade remain fairly stable, a real exchange rate at about its average 1986-87 level is consistent with a stabilisation of our external debt in 1991; and that the necessary turn-around in our trade balance can occur without requiring a marked...