We have 3 problems. Housing affordability is due to the financial restructuring of the late 80's that allowed banks, with their money creation powers into the market. Supply issues are a more recent issue, driven by high levels of immigration. The third issue is the Policy capture by Free Market neoclassical economic paradigms all of whi…
We have 3 problems. Housing affordability is due to the financial restructuring of the late 80's that allowed banks, with their money creation powers into the market. Supply issues are a more recent issue, driven by high levels of immigration. The third issue is the Policy capture by Free Market neoclassical economic paradigms all of which are theoretically dubious, and empirically unsupported , particularly the veil of RB Independence, designed to keep our elected officials hands off the financial tiller, and the lie/fear of government debt. We already see the (2 fingers) push back from RB in its response to Grant Robertson's letter. We wont cure affordability with increased supply. Independent Monetary policy is a folly, as is sticking to failed conventions. We need a coordinated response.
We have 3 problems. Housing affordability is due to the financial restructuring of the late 80's that allowed banks, with their money creation powers into the market. Supply issues are a more recent issue, driven by high levels of immigration. The third issue is the Policy capture by Free Market neoclassical economic paradigms all of which are theoretically dubious, and empirically unsupported , particularly the veil of RB Independence, designed to keep our elected officials hands off the financial tiller, and the lie/fear of government debt. We already see the (2 fingers) push back from RB in its response to Grant Robertson's letter. We wont cure affordability with increased supply. Independent Monetary policy is a folly, as is sticking to failed conventions. We need a coordinated response.