Ausnomics #2

Ausnomics #2: The Great Australian Bubble was published in ExposAsia No 12/2010.

In ExposAsia No 12, Justin Pyvis takes a look at the housing market down under. Much effort was expended during the 2008 financial crisis to keep the housing market from imploding. The result is that Australian household indebtedness has continued to grow and affordability has been pushed to new lows. The bubble bursting may be some way off but the actions of the RBA make a correction in Australia's overheated housing market inevitable while the rest of the economy will just have to suffer under higher long-run interest rates and a huge debt load.

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