The passing of media legend John Laws has triggered a string of reminiscences. Of course, as an economist it’s hard to think of a more famous moment than Paul Keating’s “banana republic” remark on May 14, 1986.

Concerned about the current account deficit, Keating observed: “If this government cannot get the adjustment, get manufacturing going again, and keep moderate wage outcomes and a sensible economic policy, then Australia is basically done for. We will end up being a third-rate economy… a banana republic.”