Ian Verrender looks at the impact of the high Australian currency on productivity in Let's be prudent as we rush to find who's responsible:

Australia, meanwhile, is being flooded with capital. It is pouring in on an unprecedented scale as resources companies scramble to build ever bigger mines to supply the rapidly emerging global economic powerhouse that is China.

The earnings impact of that investment, and the effect it will have on productivity, has yet to be felt. Right at the moment, however, it is having a seriously negative impact.

That flood of cash has kept our currency at near record levels, which has put the squeeze on manufacturing and other export-oriented industries. Earnings have shrunk and the ability to invest in new technology has waned as a result.