The associated rise in Australia's terms of trade was something my predecessor had already remarked upon. [ 3] It ultimately went much further than even the optimists a decade ago would have expected. Some of this was due to the financial crisis.
Another key ingredient of a growth-friendly economic environment is well-functioning product and labour markets. Flexible labour markets benefit both firms and workers. Contractual flexibility is essential in a world of technological change and globalisation where workers can no longer count on job security. It means greater opportunities to move into new positions and it leads to higher employment security.