The response to such a shock is relatively straightforward if the climate events are temporary and discrete: droughts are assumed to end; the destruction of the banana crop or the closure of the iron ore port because of a cyclone is temporary; things return to where they were before the climate https://www.rba.gov.au/speeches/2019/sp-dg-2019-03-12.html  3/10  3/13/2019  Climate Change and the Economy | Speeches | RBA  event.
For long term prosperity a country will be better off to rely on its total factor productivity levels. Lastly, ladies and gentlemen, I now want to answer the questions I was asked: “Are there economic reasons to celebrate the strong NAD?” My short answer to that question is maybe and maybe not. I thank you. 2  BIS Review 49/2004