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- July 1, 2013: Volume 5, Number 7

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The music makers: Central banks are changing their tunes – will global property dance?

by Benjamin Cole

Open-ended quantitative easing. Zero lower bound. Nominal GDP targeting. Skyrocketing excess bank reserves. Monetary gnomes expressing grave concerns regarding inflation — but that they want more, not less. The world of central banking has changed more since 2008 — and maybe in just the past year or so — than in the previous 30 years, at least in terms of tools and policies.

In the wake of economic challenges not seen in generations, new expressions and buzzwords are bandied about, as central banks battle against the weak economic growth and low inflation that grips economies West and East.

Every industry and enterprise will be affected by the shifting stances of central bankers, but perhaps none as much as real estate. Interest rates are, of course, vital when pondering real estate values — but much more than that is on the table: If central banks print gushers of money, where will that cash find a home?

Of course, a time-honoured inflation hedge is rea

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