AS a result of the massive fiscal stimulus applied during the COVID-19 crisis, together with close to net zero immigration, Australia has effectively achieved full employment for the first time in 50 years.
However, this outcome is unlikely to be sustainable in the absence of measures to address longstanding supply-side issues, in particular the lack of investment in research, innovation and skills. It may be just a "sugar hit", underwritten by the latest commodity price spike.
What is clearly missing in Australia, by contrast with most other advanced economies, is a coherent and purposeful approach to industry policy.
This would identify our current and potential areas of competitive advantage and enable a coordinated approach to the industries and technologies of the future.
Let's reflect for a moment on where we are.
Unlike the Norwegians, with a resource rent tax and the world's biggest sovereign wealth fund to underpin the future diversification of their economy, we failed