The Fed’s Great Big No Inflation Con

For example, we are currently seeing a housing boom in many economies, most so in Australia, on the back of ultra-low interest rates. What do central banks and regulatory bodies say when house price inflation is, say, 5%, or even 10% – let alone 30% as in Oz? Answer: nothing. Once upon a time they had to do something – but then we removed accurate measures of house prices from CPI,