10  BIS central bankers’ speeches  Australia relative to the cost of doing so in our trading partners (both measured in equivalent currency terms). Over the decade to 2011, the real exchange rate appreciated significantly, consistent with the rise in the terms of trade and the mining investment boom.
Much of that occurred via the nominal exchange rate, which appreciated by a little more than 50 per cent over that period. But part of the adjustment occurred via a pick-up in the pace of wage growth, at a time when labour productivity growth was relatively slow.