RBA monetary policy “exhausted”, yield spreads crack

Thursday, 6 April 2017

Via the AFR comes the usually excellent Alex Joiner:

“We’ve brought forward all the housing consumption we can – that’s reflected in debt,” said IFM Investors chief economist Alex Joiner. “And that debt has accumulated rapidly, ahead of incomes.”

Unlike many other advanced economies that hit the wall after the 2008 global financial crisis, Australian households have never experienced a period of active de-leveraging, in which credit contracts at an annual rate.

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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.