The IMF has published a report warning of the possibility of a global housing bubble given easy monetary conditions across the world

The IMF has published a report warning of the possibility of a global housing bubble given easy monetary conditions across the world. The organisation has called for tougher lending standards to prevent a global version of the US housing bubble. In particular, the report calls for more macroprudential policies as the traditional mix of macroeconomic policies and microprudential regulations failed to reduce control systemic risks leading up to the GFC. It is hoped that managing the broader financial system as a whole instead of individual firms will provide better outcomes. This comes as housing markets pick up across advanced economies, with Citigroup warning that the boom could limit the RBA's ability to stimulate the economy and reduce unemployment. (VIEW LINK)