The New CS Board

[jumanji0881]

The housing boom, central banks and the inflation conundrum : https://www.kitco.com/news/2021-04-21/The-housing-boom-central-banks-and-the-inflation-conundrum.html

My comment : Just let it continue to inflate. The housing bubble will eventual burst

Excerpt:
LONDON, April 21 (Reuters) - A multi-year boom in global house prices which even a pandemic has failed to halt is forcing central banks around the world to confront a knotty question - what, if anything, should they be doing about it?

The surge in property values from Australia to Sweden is often viewed benignly by governments as creating wealth. But history also shows the risk of de-stabilising bubbles and the high social cost as millions find home ownership unaffordable.

The irony is that while the cheap money created by low or negative interest rates has driven the price rises, they barely figure in central banks' calculations of inflation, one of the key drivers of their monetary policy.

While housing costs, whether rent or home repairs, are assigned varying weights in inflation indices ranging from 40%-plus in the United States to 6.5% in the euro zone, house prices themselves are left out. As they spiral higher and higher, many argue this is no longer tenable.

"The debate of whether we actually are reflecting inflation properly will come up more and more. House prices will start getting a lot of attention," said Manoj Pradhan, co-author of a book called The Great Demographic Reversal, which predicts a global inflation resurgence in coming years.