How to heal the housing market

Macroprudential policies that restrict credit growth will do little to alleviate Australia's housing affordability crisis and could even act against the national interest. But there is another solution.

Five years after the GFC, many nations appear to be lurching head first into yet another housing crisis. In response, increased macroprudential regulation has become the policy du jour, proudly advocated by the International Monetary Fund and widely adopted around the world.

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