The Effect of House Prices on Consumption

I think there is a lot of soul searching going on amongst central banks around the world, not just in Australia at the moment. The traditional central bankers like me think they've recently run out of room. Your generation are the ones who are most acutely aware of it. It's actually probably the least attractive channel for monetary policy to work through. Why? Well because by putting interest rates down, you're causing housing price booms. And if you say, well that's the only way we can get the economy to grow a little faster is cause a housing price boom, that's a massive price to pay. What's wrong with a good old fashioned housing price boom? I think you know