News for hackers. Stuff that matters.

A comment on New Zealand to ban foreigners from buying existing houses. Parent comment

Re:New Zealand to ban foreigners from buying existing houses by harryh on Friday October 27, 2017 @11:39AM (#15569448)
Nations have separate currencies because if they didn't some regions with experience inflationary monetary policies while others would experience deflationary ones. It would be impossible for central banks to do their jobs. You can see this in action in Europe with the Euro which was, and is, a bad idea.

How does this reason translate to housing policy?

[ Parent | on HN ]
Re:New Zealand to ban foreigners from buying existing houses by alexasmyths on Friday October 27, 2017 @08:38PM (#15573367)
" some regions with experience inflationary monetary policies while others would experience deflationary ones. "

Housing - and capital inflows/outflows - are primary drivers of inflation! (FYI I know housing is generally not included in inflation targets, but it really should be because it's where inflation can effectively be hidden).

Ergo - strongly related to the issue at hand.

Put simpler: those who come from countries with a different currency should not be able to buy residential property. :)

[ Parent | on HN ]