2 ms·
USA M2 graph is on pace to double in 5 years, that's quite a bit different than the 30 year comparison you make with Japan. Real estate happens on the margins,
by peteradio 5y ago
USA M2 graph is on pace to double in 5 years, that's quite a bit different than the 30 year comparison you make with Japan. Real estate happens on the margins, very few people are selling homes as a percent of homes owned. When I look at Japan's chart there are effectively zero inflection points after 1990.
- arcticbull 5y agoThere's no reason to think that, actually. Certainly not to think that it's responsible. You can pick from any of a large set of developed countries - Canada, the UK, much of Europe - they all had different monetary policies but punitive zoning rules and saw the same effects on housing prices. The ones that stand out as having the most liberal zoning rules see the lowest increases in housing prices.
- peteradio 5y agoYou seem to have identified a case where there is an obvious effect, but that shouldn't then be used to dismiss the obvious potential for other effects. Anyway that's besides the main thrust of my response, that is, M2 of USA in 2020-2022 is nothing like the 30 year history of Japans M2.
- thatfrenchguy 5y agoThere is no proven correlation between M2 and housing prices