Gruen: Don’t rely on house prices for growth

Once he ran a non-bank lender. Now he’s singing a different tune, at the AFR:

Nicholas Gruen, Lateral Economics chief executive and a former adviser to Labor treasurer John Dawkins, said the RBA was “pushing on a string” with near-zero interest rates and the fiscal policy of governments had rightly picked up some of the slack during the COVID-19 crisis.

“People think housing is a way to grow wealthy, but rising house prices add nothing to production,” Dr Gruen said.

There are 869 words left in this subscriber-only article.

Start your free 14-day trial today!

Comments are hidden for Membership Subscribers only.