The Importance of Speculation in Australia's Growth

Australia's enjoyed the longest running housing boom in the world at least until the end of 2017. House prices increased 6,556% from 1962 and that's coincided with historically unprecedented growth in GDP. We haven't had a recession since September 1991 but as Haimin Minsky said stability leads to instability. Australia has become very complacent and our growth has largely been driven by the housing boom which we blew at the end of the mining bubble. Now we're going to be paying the price for that very, very soon.