This paper considers some policy choices posed by the prospective Australian resources boom, distinguishing between the investment boom and the export boom and between the adjustment and the non‐adjustment options. With adjustment both booms are likely to lead to real appreciation, raising the ‘Dutch disease’ issues. Non‐adjustment means accumulating foreign exchange reserves by preventing both nominal appreciation and inflation. It is discussed whether protection by tariffs or quotas should be lowered or raised because of the export boom. An Appendix analyzes the monetary policy implications of both the floating rate (adjustment) and the fixed rate (non‐adjustme