More generally, while everyone understands that there is a “mining boom”, many people would say that they themselves cannot directly feel the effects. We have seen widespread re-emergence of talk of “two speed” or “multi speed” economies. Within the state of Queensland itself there were differences in performance, even before the floods, let alone after them.
The nature of current emerging market problems In order to better understand the general picture behind the shift in capital flows and the depreciation pressure in several emerging markets, let me briefly reflect on the build-up of these problems. Apparently, they are rooted in the period of easy finance after 2008.