Chasing the Chinese dragon
China has been devaluing its currency – a move which could place pressure on interest rates here in Australia and on our commodities prices. It could also see increased pressure on the housing market, as Chinese investors move currency offshore.
But some economist argue the move will be good for our economy as well as better reflecting underlying economic conditions in China.
In the meantime, Treasurer Joe Hockey has announced Australia will be a founding member of the new Asian Infrastructure Investment Bank , with China the largest shareholder.
And China will send representatives to a Northern Australia Investment Forum planned for November to discuss their potential role in the development of Northern Australia. On the Money takes a special look at China.
Story features:
- Lindsay David, economist and author of Australia: Boom to Bust
- James Laurenceson, Deputy Director of the Australia-China Relations Institute
