A number of pundits have recently declared that the Australian dollar is approaching parity with the U.S. and that we may reach those heady grounds by Christmas. What in the name of all that’s imported does that have to do with babywearing, I hear you ask?
Plenty, my friends.
You see, “parity” is a short-hand economist’s way of saying that one Australian dollar is equal to one U.S. dollar. As these things go, when one Australian dollar is worth more U.S. currency, it’ll be worth more Euros as well.
Can you see where I’m going with this? That’s right- your wraps and your SSCs, your ring slings and your mei tais; anything made overseas, or made from overseas goods has been getting cheaper. It’s going to get cheaper still, as long as the value of our dollar continues to climb.
To that end, I propose that the Babywearers of Australia (and New Zealand) unite! We must reach parity! The power to change our economy is in our own hands! But how?
That, too, is simple. One of the reasons why the Australian dollar is performing strongly in recent times is the anticipation (and reality) that the Reserve Bank will lift interest rates. Combine that with Australia’s strong economic performance compared with other developed nations and investing money here is now a better option compared to other places. So the money pours in, Aussie dollars are bought and the price of the dollar (our exchange rate) increases.
In order to reach parity, we must convince the Reserve Bank to lift interest rates further! Forget your mortgages, your credit cards and your car loans! Compared to baby carriers, they’re unimportant! The Reserve Bank’s objective is to achieve (amongst other things) low and stable inflation. If inflation gets too high, or it is believed that it will be too high in the future, the Reserve Bank will lift interest rates. This is our ultimate goal: high interest rates means a high exchange rate (usually). We must drive inflation! But how?
Inflation is driven by spending. The more the economy spends, the higher the rate of inflation. So there you have it- we must spend! We must buy carriers now so that we can buy cheaper carriers later! It’s a foolproof plan!
Go forth and spread the word, fellow downunder babywearers: it’s your national duty to buy as many babycarriers as you can!
Has our sudden turn towards parity changed your plans to buy or sell a carrier? Leave a comment and let us know!