Stiglitz Says House Prices in Two-Speed Australia a Concern
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High Australian house prices are a “cause of concern” as a resource boom helps fuel disparity between the mining industry and the rest of the economy, Nobel Prize-winning economist Joseph Stiglitz said.
“There is the beginning of a cause of concern, and it would probably be prudent to take some actions,” Stiglitz said of the nation’s housing market at a briefing in Sydney today. Wealth from natural resources can “cause expansion of the non- trading sector, in particular real estate, and real estate bubbles.”