@ProfSteveKeen @ari1601 @Forbes - Germany enjoyed a depressed Euro since inception massive gains for Germany traded exports.
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RT @EconEconomics: Britain's monetary policy: Uncertain times http://t.co/duprHr3vZj http://t.co/7upvxjovG6
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RT @TheEconomist: Why the world is addicted to debt? http://t.co/jhH8UQINxW http://t.co/6e9n2xLcF9
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RT @EconEconomics: The Economist explains: Why the world is addicted to debt http://t.co/Ik8kUbbwQd http://t.co/JGMRRsQBJy
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RT @TheEconomist: The world is debt-addicted: Global debt vs GDP trends for 47 countries since the year 2000 http://t.co/bt0rG5dk9G http://…
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RT @EconEconomics: Subsidies that make borrowing irresistible need to be phased out http://t.co/7UkaOdC6Rn http://t.co/CWvVYXdCfL
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. @GaneshAhirao - we know what we have till it's gone...
17/05/2015 12:56 PM
NOV 13

Loan to Value Ratios

1 comment(s)

There was a recent article in Bloomberg, which talked about RBNZ’s recent moves to protect financial stability, particularly in comparison to the Federal Reserve.

New Zealand was not the first to expand the use of prudential controls to blunt debt growth. It is inevitable that targeted interventions create reactions from the targeted rather than spreading the pain around by an interest rate hike, and who cares about a few exporters suffering with higher exchange rates.

The word is the LVR restrictions are being effective, perhaps too effective in areas that are no contributing to the asset price bubble. Collateral damage needs to be avoided or we run the risk of the antibodies triggered by the prudential restrictions impacting good policy – the policy bombs need to be smart.

LVR restrictions in the regions and for new builds make no real sense and should be seeing some policy attention.

tags: loan to value ratios, prudential tools, policy, interest rates, exchange rates
Industrial Real Estate Loan - 25 December 2013 at 4:09 AM
That is a very well written blog. Today its hard to get loan from banks due to their security and interest factor.

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