German elixir for our Dutch disease

The Australian manufacturing industry is dying, struck down by our commodity-driven exchange rate. However, the strategies of Bavaria's 'Mittelstand' companies show a path back to health.

Every day now, our manufacturing sector shows more symptoms of a potentially terminal illness. Called Dutch disease, it is the malaise caused by a high, commodity-driven, exchange rate. Across the sector jobs are rapidly disappearing. Our car industry teeters on the brink, as does aluminium production. Employment is being scaled down in steel products manufacturing, textiles, aircraft engineering, and so on.

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