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ha, no, just an interest I have....

Perhaps it is high house prices that cause high interest rates, not the other way around, and the fact asset prices are rising is an indicator of excess money in the economy?

OK, I'll rephrase; the idea that the days of high inflation and therefore high interest rates are gone forever doesn't make sense. Interest rates and inflation are not in symmetry, changes in one indirectly affect the other but they don't move up and down together under the current goals of...

Not really, inflation increases when money is increased in the economy without also increasing capacity to supply goods and services. More money chasing the same level of production causes prices to rise. So if we look at the growth of money and think that perhaps production capacity hasn't kept...

That not quite the way the current monetary policy works. Inflation is not suppose to rise above 3%, so if it went up to 4% the RBA 'may' raise rates 4 times at .5 points each to bring it back down to 3%. So you will still have inflation of 3% but interest rates at ~10%. This could happen a few...