I had been going to write something about housing this morning, but got distracted in the WEO database. House prices, especially in Auckland, are a political and social scandal.
But now Grant Spencer, Deputy Governor of the Reserve Bank with responsibility for financial stability, is out with a speech on housing, “Action needed to reduce housing imbalances”. It is difficult to know where to start in commenting on the speech, although the title will do. The tone of “Action needed” seems to inject the Bank into politics, and the political debate, rather more than is prudent or than its two main statutory responsibilities, price stability and prudential supervision to promote the soundness and efficiency of the financial system would warrant. For better or worse, the Reserve Bank has a variety of statutory powers it can exercise. If it judges those powers should be used it should lay out its case…
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Utopia, you are standing in it! 
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