Why cutting interest rates doesn't work!, page-3

Interest rates aren't the magic pudding but a lever to lower our dollar. Ultimately they can effect property prices either way and the Sydney/Melbourne boom has been created by external influences by and large.

Further lowering of rates would almost be deflationary to big city prices.

The big picture is global trade and not welfare blah blah. China is lowering interest rates and flooding their economy with money to create stimulus and depreciating it's currency to compete with other large Asian export economies.

Economic life is not simple nor can it be explained away by tacky one liners. Interest rates have little to do with our other big problem; that is government spending in relation to it's income. I find it annoying when the two are linked.

Monetary and fiscal policy are not the same thing, never were and never will be.