In Bubble Economics, Paul D. Egan and Philip Soos explore a depressed Australia in the 1840s, 1890s and 1930s. They detail recurrent patterns of boom-bust credit and asset cycles which heralded financial instability, particularly following speculation in commercial and residential land markets.
A financial instability model is put forward to predict economic downturns which is based on Georgist, post-Keynesian and behavioural finance schools of economic thought, informed by data from 1830 to 2013. The trends in Australia’s current trade settings, residential property market and banking sector are ominously similar to the key precursors to Australia’s ‘Great Depression’ of the 1890s – a recession or depression may now be imminent.
Egan and Soos expose ‘rentier economics’ in the land down under and discard the dominant neoclassical paradigm, bringing a fresh perspective to the intense debate about Australia’s economic future.
LF Economics is proud to present an immense chart pack detailing the history and latest trends in Australian housing and private debt markets, including the economy at large. With over 500 figures and tables, this chart pack is sure to fascinate those with an interest in real estate analytics. Certainly, Australians are obsessed with real estate.
Alongside these concerns, the country faces an uncertain future with the largest mining boom on record sinking, commodity prices collapsing, capital expenditure falling, domestic industry hollowed out, a poor business investment environment, rental price growth running at the slowest pace since the early 1990s recession, wage and national income growth at record lows, stagnant employment prospects and the auto industry closure.
To assist with understanding these developments, LF Economics comes to the fore with a fresh understanding of market dynamics. The chart pack features detailed real estate analytics never seen before, providing astute investors with an arsenal of tools that can be deployed to time the housing and economic cycles.