“Could falling house prices damage the economy?” Um…maybe…

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Via Deutsche economist Adam Boyton at the AFR:

A period of steady or falling house prices will slowly (and the emphasis here is on slowly) help those trying to break into the market.

…But could falling house prices damage our economy? That’s been a recurring view offshore for over a decade now – the huge risk posed by falling house prices in a country where house prices never fall.

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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.