AUSTRALIA faces a run on its currency, a deeper collapse in housing prices and a bank funding crisis to rival Europe's as it attempts to come to grips with life after the mining boom, according to a widely circulating report from a boutique US advisory firm.

Entitled Australia: The Unlucky Country, the report from Variant Perception argues Australia faces a classic case of Dutch Disease, the erosion of capability that flows from a resources boom and an overvalued exchange rate.

"The mining sector has crowded out almost all other sectors of the economy and also funnelled credit and liquidity into a housing bubble in the real estate sector," the report says.

The Australian dollar is overvalued on most metrics, one being the hamburger-based Big Mac Index, which has the Aussie 15 to 20 per cent above par, Variant says. But it will need to fall well below par and stay there for some time for the rest of the economy to come to the fore after mining retreats.

"It will be almost impossible to move mining capacity to other sectors in Australia," the report says. "This is a classic problem for economies which suffer from Dutch Disease.