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Lower interest rates would alleviate a lot of the crisis. The bubble has meant that interest rates have been artificially high.


hmm not sure i buy this but happy to be corrected. I'd argue that low interest rate for a substantial period post GFC has led to misallocation of capital to more finite assets such as housing which in turn has led to increase house prices and secondary effects of increased rent. Lowering interest rates further will only exarcebate that. And we can of course increase housing supply, build more houses etc. but that takes time and the short to medium term will continue to be awful




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