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It wouldn't just be inflation... though rising house prices (which would invariably see home loan repayments and rents rise too) combined with more asset backed lending (equity maaate) ---> inflationary. It's financial stability and the flipside of rampant "asset price inflation" (central...

If it manifested itself in inflation, I'm pretty sure they would. Central bankers just their inflation targets. But as redom has said... not any immediate danger of that atm.

I'll put a different spin on things (as much for the sake of discussion as anything else)... Extremely low interest rates (such as those we have now) plus Rising property prices (refer to multiple threads) equals Conditions for an equity fueled spending splurge (in the form of debt) In...

Or as I have said to people for years.... There are no lies in economics. Only alternative versions of the truth.

I think most economists would concede the limitations of their forecasting. Certainly the ones I have known would.

Like much of economics, inflation is a paradox. But it isn't as though its effects on interest rates can't be managed.

From negative to "two fifths of stuff all" ? See: RBA Australian Cash Rate