Western Australia's easy ride

It should not be forgotten that Western Australia is benefitting from significantly lower exchange rate and lower interest rates than it would see without the relative softness of eastern Australia.

Contrary to most perceptions, the Western Australian economy has had something of a free ride courtesy of its membership of the Australian Federation. Rather than being held back by the weaker eastern states, the fact that the Australian dollar and interest rates have been held lower because of the soft economic conditions in the eastern states means its economic growth has received a terrific boost from having easy macroeconomic policy settings to support it.

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