RBA releases conference papers on Australia's property markets: Tweet of the day

The RBA has released the proceedings of a conference held in August on Australia's property markets. It includes discussion papers on land and housing price measurement in China, housing finance, when a housing market is overheated enough to threaten stability, and the commercial property cycle. 

In one discussion paper, RBA governor Glenn Stevens warns that lowering interest rates following an “asset price bust” to stimulate lending can have "toxic consequences".

Oxford University macroeconomist John Muellbauer also looked at the risks posed to financial stability from "boom-bust" housing cycles. Muellbauer provided an overall positive assessment of Australia’s prudential and regulatory oversight.