Do you trust governments with monetary policies to control property prices?

In the UK the government is making a real hash of Brexit which prompts the question, do you trust politicians/governments of the day to introduce monetary policies which will control property prices (avoiding boom and bust) in the longer term?

 

The problem here is that, whether Conservative or Labour, ANY political party will do what is best for its supporters and not necessarily what is best for the country. Unfortunately that is how the political system works

 

Politicians huff and puff to grab the attention of would-be supporters but at the end of the day money talks in the world of investment. If tax charges connected to the buy to let market, as one example, increase to levels which are unsustainable for investors then they will simply walk away. They will find a new market, switch their funds into that and the UK government will be left with even less social housing/private rental properties than it has today. At some point, the tail will start to wag the dog and the politicians will eventually need to listen to investors. Politicians like to think they are in control but it is investors who effectively “make markets”.

 

This is your stereotypical “King Canute” scenario – trying to hold back investor sentiment and control investment funding. The markets will always win but the politicians will attempt to give the impression of small victories along the way. Smoke and mirrors…..

 

Any government will do what it has to in order to secure its core vote and try to tempt over those in the middle ground. The Conservatives will push capitalism and Labour will push socialism - what more can we really expect when that is what they stand for?

 

Yeah, I personally believe them. Because of those policies only, country like India is able to balance their economy even in tough times. I think monetary policies work well for the country's having huge population. Countries having less population might not need these.