And, as I said a few minutes ago, it is as much about the underlying analysis and storyline as it is about a particular set of numbers. A higher capital stock I would now like to discuss a couple of practical considerations that we have been thinking about as we have put our forecasts together over recent times.
The first of these is the implications of a significant increase in Australia’s stock of physical capital. As the Governor spoke about at length last week, Australia is experiencing a perhaps oncein-a-century boom in the terms of trade, largely reflecting the urbanisation and industrialisation of Asia.