As the economy slows and productivity flatlines, is Australia having another banana republic moment?

In 1986 Paul Keating warned the nation was headed towards economic disaster without reform. Now, Jim Chalmers faces a similar dilemma

• Get our breaking news email, free app or daily news podcast

When Paul Keating stepped into a noisy kitchen in a Melbourne function centre for an interview with John Laws, he didn't mince his words.

It was 14 May 1986 when the then Labor treasurer told Laws that without some serious changes, a collapse in export prices meant our trade-dependent country was living beyond its means and fast on its way to becoming a banana republic".