Coming to terms with Australia's stark economic reality

A demographic shift and mediocre productivity growth will reshape the nature of the Australian economy, but there are no easy solutions.

Reserve Bank of Australia Governor Glenn Stevens might move markets but his deputy Philip Lowe is making a name for himself addressing the long-term and pivotal issues facing the Australian economy.

In a speech last night at The Sydney Institute titled Demographics, Productivity and Innovation, Lowe addressed two of the most important challenges for policy makers in coming decades: an ageing population and subpar productivity growth.

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