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Parnell Palme McGuinness

How Australia could have a miracle recovery

To rapidly bounce back from the virus like post-WWII Japan and Germany, the reopened economy needs continued immunity from rent-seeking regulatory rigor mortis.

Parnell Palme McGuinnessColumnist

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How well we snap back, whether we experience a V, W, U or other alphabetically styled recovery, will depend on whether the upheaval caused by the COVID-19 virus has shaken up existing systems enough to expose and dislodge the regulation and rent-seekers standing in the way of progress. If it has, Australia could experience a miracle recovery that emulates the post-WWII recoveries of Germany and Japan.

At least, that is, if the theory of Mancur Olson, an economist who studied how nations prosper or stagnate, is correct.

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Parnell Palme McGuinness is managing director of Agenda C.

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    Original URL: https://www.afr.com/policy/economy/how-australia-can-experience-a-miracle-recovery-20200512-p54s26