Is Australia printing money for the corona virus?
If so, can anybody explain what that will do to the economy and property prices in terms of inflation?
- OiyLv 62 months ago
No, not at all. AUS is not hard currency. It uses a managed system to influence the exchange rate like many countries in Asia. But it has to follow the monetary policy of the Federal Reserve. If it needs money it has to increase borrowing and change the policy rate to stimulate capital flows.
- ZirpLv 72 months ago
printing on paper isn't necessary. money is created digitally. Creating money by itself does not automagically cause inflation.
A retailer that sells more items per week has no reason to raise prices.
- martinLv 72 months ago
You will have to pay more money for what you want to buy in Australia. You will be under pressure to work harder, if you are working class or middle class.
- 2 months ago
The whole world is printing money. For as long as everyone does it, it makes little difference. Just compare the amount of money in circulation to the country's gold reserves and you'll see that nearly all money is fake.
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- Steve HLv 62 months ago
The Australian dollar is devalued against international currencies due to the additional printing of money.
The following is just an opinion, but I think from a cost point of view Australian property won't increase in dollar amounts. Hence a property which costs $1 million today with be much the same price in one year's time.
There are various factors as for why I believe this, but one is that Australian property was already overvalued due to excess Chinese investment and the second reason is because tenants are having trouble paying their rent. Hence property isn't so viable as a quality investment over the next couple of years.
The property prices would have fallen otherwise, but the printing of money will make it "seem" as if the premises is the same dollar value.
This is all speculative of course. Market forces will ultimately decide which way property prices go.