http://www.rba.gov.au/rss/index.html Research Discussion Papers contain the results of economic research within the Reserve Bank. They are issued throughout the year, with summaries periodically reproduced in the Bulletin. The views expressed in them are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia. 2012-01-06T14:00:00+11:00 Reserve Bank of Australia en http://www.rba.gov.au/publications/rdp/2011/pdf/rdp2011-08.pdf The Australian mining industry experienced a remarkable turnaround during the 2000s. The rapid growth of emerging economies in Asia drove a surge in demand for commodities, particularly those used in steel and energy generation. With global supply unable to respond quickly, prices surged to historically high levels. In response, mining investment in Australia rose to record levels as a share of the economy by the end of the decade. The rise in commodity prices has boosted activity and incomes and encouraged the factors of production to shift towards the mining industry. The boom has also been associated with a large increase in the real exchange rate, affecting trade-exposed industries. Overall, Australia's macroeconomic performance during the decade was much more stable than during the earlier mining booms, reflecting a stronger institutional framework. 2012-01-06T14:00:00+11:00 The Mining Industry: From Bust to Boom 2012-01-06 Australian mining industry commodity prices structural change The Mining Industry: From Bust to Boom http://www.rba.gov.au/publications/rdp/2011/pdf/rdp2011-08.pdf PDF version Ellis Connolly Ellis Connolly David Orsmond David Orsmond January 2012 Reserve Bank of Australia Research Discussion Papers RDP2011-08 N57 Q31 Q33 Q43 http://www.rba.gov.au/publications/rdp/2011/pdf/rdp2011-07.pdf The 2000s was a particularly eventful decade for both the international and Australian economies. There were: two recessions in many countries; the largest international financial crisis since the Great Depression; the ongoing rapid development of Asia; asset booms and busts; and, Australia experienced the longest sustained increase in commodity prices and the terms of trade in the nation's history. This paper provides an overview of the Australian economy's performance in the decade. Several key topics are elaborated on, including the development of Asia and implications for Australia, policy frameworks, and the opportunities and challenges facing the Australian economy, with a particular focus on the expansion of household balance sheets and the rapid growth in the mining economy. 2012-01-06T14:00:00+11:00 Australia's Prosperous 2000s: Housing and the Mining Boom 2012-01-06 Australian macroeconomy economic performance household balance sheets terms of trade monetary policy fiscal policy Australia's Prosperous 2000s: Housing and the Mining Boom http://www.rba.gov.au/publications/rdp/2011/pdf/rdp2011-07.pdf PDF version Jonathan Kearns Jonathan Kearns Philip Lowe Philip Lowe January 2012 Reserve Bank of Australia Research Discussion Papers RDP2011-07 E52 E62 F02 G20 N15 N17