Professor John McHale:

Without a supply response, it will be a matter of concern. The policy should be to bring forth as strongly as possible a supply response. The impediments to that response should be identified and addressed to the extent that it is possible to do so. Without a supply response, strong credit growth would lead us into dangerous territory, thus returning us to the necessity for the types of instrument mentioned by Deputy Richard Boyd Barrett and Senator Sean B. Barrett, namely, the use of macro-prudential policies such as debt-to-income ratios and loan-to-valuations and so on to ensure this time round credit growth was controlled in a way that it was not previously.