Grenville smashes Joye

Via monetary curdudgeon Stephen Grenville:

Australian proponents of QE have noted that bond-purchases might not have much impact here, as long-end borrowing is mainly confined to the public sector.

Never despair, they say: the RBA should buy shorter-term bank debt and mortgage-backed securities (MBS), or make loans to banks earmarked for on-lending, especially for housing…This is a market that doesn’t need stimulation. And Australia is already among the highest in global rankings of household debt and house unaffordability.

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