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Originally Posted by dr wadd
To take this single point, one of the primary reasons we run the risk of massive house price inflation is due to a severe shortage in certain areas of the country. If the government weren`t so twitchy about building on greenfield sites then this problem could be overcome. It is a little simplistic to latch onto a single factor such as interest rates when there are other factors that could be manipulated to counter their effects.
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That's the point, though, it is just a single point (if you see what I mean). The case for currency integration doesn't stand or fall on that one argument, and in fact that one argument doesn't fall on the basis of the point you make about the Government's ludicrous housing development policy - as I said, Germany's recession is a good example of the opposite danger of setting a single interest rate for the whole EU.