Hardly anyone believes that prices are really increasing by only 1.9% per year. The fault lies with us, and also the way the Bureau of Statistics adjusts prices for 'quality'.
The debate ought to be about whether we should have spent big. It was good that we did. But we need to "reload" and get the financial system under control.
It is thought that it doesn't help much to cut official interest rates toward or beyond zero, and maybe it doesn't, but new research suggests the answer has a lot to do with the housing market.
