Economic
Roundup

Issue 1, 2010

© Commonwealth of Australia 2010
ISBN  978-0-642-74591-0

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to:
Commonwealth Copyright Administration
Attorney General’s Department
3‑5 National Circuit
BARTON  ACT  2600

Or posted at:
http://www.ag.gov.au/cca

The views expressed in the Economic Roundup are commentary only, and should not be considered as advice. You should not act in reliance upon the views expressed in the publication, but should seek independent professional advice in relation to these issues and any proposed actions.
The Commonwealth and the authors disclaim responsibility for loss or damage suffered by any person relying, directly or indirectly, on this publication, including in relation to negligence or any other default.
Internet
A copy of this document appears on the Treasury website at:
www.treasury.gov.au
Purchasing copies
Over the counter at:
16 Nyrang Street, Fyshwick ACT
Canprint Telesales:
Toll Free 1300 889 873
(Operator service available between 8 am and 5 pm AEST weekdays.
Message facility available for after hours calls.)
Canprint Mail Order Sales:
PO Box 7456
Canberra MC  ACT  2610
By email at:
sales@infoservices.com.au

Printed by Canprint Communications Pty Limited
Contents
Changing taxes for changing times — Dr Ken Henry AC	1
The economic outlook and challenges for the Australian economy — Dr David Gruen	15
Australia’s current account deficit in a global imbalances 
context — Phil Garton, Matt Sedgwick and Siddharth Shirodkar	29
New estimates of the relationship between female labour supply and the cost, availability, and quality of child care — 
Xiaodong Gong, Robert Bruenig and Anthony King	51
Managing manna from below: sovereign wealth funds and extractive industries in the Pacific — Martin Gould	63
Key themes from Treasury’s Business Liaison Program	87
Ted Theodore: the proto‑Keynesian — John Hawkins	91
What’s new on the Treasury website	111
Past editions of Economic Roundup	117
Sources of economic data	119