Raising rates; You can answer that yourself by looking at CPI and GDP growth. Simple answer is no, it wasn't possible within the RBAs mandate. Which was a set a long time before the Fed started using QE.
The end of the mining boom, I should have called the mining investment boom, was definitely a contributing factor in rates staying low. Building mines takes way more workers and invested capital than operating mines. Take a look at Perth property, after the investment boom it started to decline significantly, but that doesn't really fit in with your argument does it? btw Mining is 11% of GDP but only 2% of jobs.
Of course assets rose on the back of low interest rates. No one is disputing that. You only ever mention property and property investors. So it was worth pointing out that the stimulus was not put in place to inflate property prices. It was to keep the economy going and put a floor in the stock market.
As for leaving markets to their own devices. I actually agree with this. However I personally don't think anyone can answer the question of whether new policy is working better or worse than the old way, not yet.
The old way. i.e. great depression, the recession we had to have. Caused incredibly painful periods, not for the wealthy (although some lost out), but for the workers who lost their jobs when unemployment goes through the roof. Small business fail, suicide rates sky rocket. Is that something governments should just "leave to their own devices"?
I agree that it was a good clean out for poorly run businesses.But at what cost.
I am also not saying there won't come a time when it all comes crashing down. Actually it is inevitable there will be sustained downturn at some point. So when it does and once the ensuing recovery is complete. Then, and only then, will we know if the current method worked. One thing I will say, is that the US Fed's strategy post GFC worked a hell of a lot better than Europe's.
