Peter Mathews (Dublin South, Independent) | Oireachtas source

The Minister mentioned that at the moment there are some transactions that are showing price rises in the property market around Dublin in particular. There is a golden rule that a house has an economic value of the inverse of the yield. In other words, if an investor buys the rent at a 7% yield, the house is worth 15 times the rent. That is a stabilising force and the key stabilising force is fractional reserving. One cannot create more than €641 from €100 initial deposit if the banks fractionally reserve at 13.5%. This is a mathematical fact.