Many economists and analysts now believe the Australian economy is back to normal after the GFC. But Professor Neville Norman of Melbourne University points out several areas in which things are not normal: exchange rates for one, the "fiscal push" created by ongoing stimulus packages and the fact that we're out of step with other world economies still struggling to recover. He says we're actually in a period of stagflation: contraction in some areas and inflation in others. This can be expected to create problems for business in 2011.
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