Those of you who were here at last year’s Anika Foundation lunch may have noticed that I have selected the same title today.1 The challenges have changed in nature, but there are no fewer of them. The first part of my remarks will be about the general set of issues confronting policymakers in key economies. They are not about Australia, unless specifically noted.
First and Foremost, I think what we need to understand is that the exchange rate reflects a price. And, as is the case with all prices for goods and services in the economy, the exchange rate will change and respond to the dynamics of the economy and will always be subject to the dynamics of demand and supply.