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Will Australia join the great global deflation?

Thursday 23 October 2014

Dixon Advisory’s Max Walsh has written a ripper piece in The AFR today warning about the dangers of pinning an economy on rising housing values and debt, which more often than not lead to a significant downturn and a period of financial instability:

If you think you have heard the story of the finance-based, housing-led recovery that was the ideal medicine for an economy under stress, you are correct.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.