How to deflate the housing bubble without killing the economy (members)

Advertisement

Back in 2003, when Ian Macfarlane’s RBA had been running overly easing monetary policy for years, he suddenly noticed that he had a housing bubble growing in Sydney. He repeated his benchmarks for such recently:

“we had lending for housing and prices rising at 20 per cent, half of it speculative lending, negatively geared.

There were seven prime time television programmes on how to get rich in property.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.