Save don't spend, says RBA boss Glenn Stevens
- Tue Nov 30 01:00:00 EST 2010
AUSTRALIANS should save rather than ramp up spending while the economy surfs a ''once in a century'' tidal wave of prosperity, according to Reserve Bank governor Glenn Stevens.
Sounding a warning about the ''challenge of prosperity'' facing the nation, Mr Stevens said last night that it would be unwise for Australia to become hooked on unsustainable levels of spending.
There was no way to know if Australia's roaring terms of trade - the value of exports relative to imports - would continue at its current 60-year high, he said.
But he signalled that it would be foolish to assume the nation's exports would continue to be so lucrative in the long run.
''It would be a mistake to rest on our recent achievements, as significant as they have been, and to fail to press on in our efforts to do better,'' Mr Stevens said.
''On all the indications available, we are living through an event that occurs maybe once or twice in a century.''
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