Mining boom makes little sense

By Ross Gittins
Updated August 25 2014 - 5:18pm, first published 2:26am
Illustration: Michael Mucci.
Illustration: Michael Mucci.

Conventional economic analysis assumes the behaviour of businesses is always rational but, in reality, the booms and busts that cause the ups and downs of the business cycle are driven by emotion more than rational calculation: unwarranted optimism, greed, impatience, short-sightedness and herd behaviour. Consider our resources boom.

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