1969 was a year of low inflation and low interest rates. Household savings as a percentage of GDP was around 30 per cent and the total market capitalisation of the Melbourne Stock Exchange had just exceeded $20 billion dollars. A capital intensive broad-based mining boom built on coal and iron ore and the emergence of Japan as a key trading partner was driving Australian growth and the current account deficit.1 As the mining boom dissipated, however, the subsequent period from the early 1970s was one of declining economic growth and a slowing economy. At this point it is not difficult to see parallels between the experience of the economy in the period 1965 to 1975 and in the period post the Global Financial Crisis (GFC).

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This paper uses data from the Australian Equities Database. For more details, please click here.