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Contributions of Australian economists to understand the effects of a boom export industry are reviewed. Effects are considered on: the real exchange rate; output, prices and factor incomes of the boom industry, other trade-exposed industries and nontraded industries; and national income and its distribution. Theoretical models and empirical models are reviewed. Different effects are considered for supply-sideversus demand-side-driven booms, and then for the price increase, investment increase and production increase phases of the boom. Evaluations of industry and macroeconomic policy options are canvassed.


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