Graeme Wheeler has written an op-ed on “Why Loan-to-Value Ratios were introduced“. Good, communication is an important part of what a central bank needs to do – especially when introducing new things!
I’ll leave the comments on this to someone else, I’ll just note:
- If you want my view on some of the things noted here, go here.
- If you want my view on the end where the op-ed goes into housing affordability, go here and here.
- Brennan McDonald points me to a useful John Cochrane piece which is relevant.