Posted September 07, 2018 09:30:13In the past two decades, Australia’s real estate market has soared to an unprecedented height, fuelled by an unprecedented level of optimism about its prospects for economic recovery.

It’s a view that is not shared by the rest of the world, which is still struggling to recover from the global financial crisis of 2008.

The global financial crash is remembered fondly in Australia as a major turning point for the nation’s economy, with many Australians now blaming their country’s rapid recovery on the Federal Reserve’s quantitative easing (QE) programme.

In recent months, however, the housing boom has seen its effects reverberate through the wider economy.

Australia has been hit hard by a global recession and is struggling to regain the momentum it enjoyed in the past.

That’s partly because of the collapse in house prices, which have been driven in part by the Federal Government’s policy of loosening lending standards to help property investors.

But the Government’s policies also played a role in the rise of the bubble in the first place.

What happened in Australia?

In the decade leading up to the global economic crash, the Australian economy grew at a modest 1.4 per cent a year.

Despite the fact that the national debt was around 60 per cent of gross domestic product (GDP) and was approaching a peak, the nation was not in the midst of a recession.

Instead, Australia was experiencing the greatest economic expansion since the 1930s, fuelled in part as a result of the Government stimulus measures introduced by the Rudd Labor government.

As well as easing lending standards, the Federal government also eased restrictions on the amount of mortgage-related lending that could be made available to new home buyers, while also encouraging investors to buy properties and sell them to build a new life.

To help boost house prices and boost housing supply, the Reserve Bank of Australia cut interest rates to near zero and loosened lending restrictions for investors.

But as house prices continued to rise and property values continued to fall, the economic downturn deepened.

At the start of this year, the Government was forecasting that the economy would grow by just 0.6 per cent in the year to June 2018.

Then the economy slowed to 1.6 million people a month, a slowdown that would not return.

By mid-August, the economy had shrunk by just over 1.5 million people.

While the recession was still in full swing, Australia began to recover.

After a brief recession in the fourth quarter of 2018, the unemployment rate had dipped below 4.1 per cent by the end of that month.

Although Australia has recovered a little since then, the recovery has been uneven and there is still a long way to go.

A number of factors have been driving the Australian housing boom, including the Government policies that led to the boom.

When did the boom begin?

The Federal Government introduced the Quantitative Easing (QEs) programme in the early 1990s, which allowed banks to borrow heavily to buy back mortgages that had been sold at a discount.

During the first phase of the QEs program, the cost of buying a home in Australia rose from about $700,000 to $1.6 billion.

However, interest rates were reduced, and the Federal Treasurer, Kevin Rudd, promised the economy was in good shape.

“In the first year of the stimulus, the average price of a home was $1,400 higher than it was before QE,” Mr Rudd said at the time.

He was correct.

Between 1997 and 2005, prices rose by an average of $1 million a year on average, and house prices increased by an extra $3 billion each year during the recovery period.

On the flip side, the government also cut down on mortgage lending, and interest rates dropped sharply.

Meanwhile, Australia had been hit by a downturn in the global economy, which made house prices rise more slowly than the average Australian would have liked.

With the global recession hitting Australia hard, there was an expectation that QE would be a key tool to support the economy.

But by early 2017, the QE policy had been cancelled and interest rate cuts had started again.

Who was affected? By the end