If the RBA cuts the OCR as you describe, couldn't that ignite a general asset inflation boom again?
Yes moondoong. But only after the deflation. Japan is yet to fully deflate after some 20 years. But that's because global growth sustained their export markets and employment so it was a long & slow but not too painful deflation (helped by their huge personal savings).
With global growth now slowing, including China, Australia's deflation is likely to have less external support and occur quicker (as part of the worldwide trend). The great credit contraction (GCC) actually commenced from 2007 and could take up to 10 years (which also supports Steve Keen's outlook).
