). there is also some evidence of younger generations receiving increased assistance with household expenses from older generations, including by continuing to live in the family home. it is quite likely that these trends will continue with it becoming more commonplace for parents to help their children in the property market. this has both economic and social consequences. of course, if this type of intergenerational assistance does become more common, then fewer parents will be able to use the capital gains that they have benefited from to boost their own consumption. instead, in effect, they will be using those capital gains to support the following generations with their higher housing costs. alternatively, if it turns out that today ’ s generations use their capital gains to increase their own spending, then they will have less ability to help their children. if this were to happen, i suspect that, over time there would be some downward pressure on the price of housing, relative to incomes, as future generations deal with the high cost of housing. implications for monetary policy in the remaining time i would like to touch on three issues relevant to monetary policy that are closely related to the issues i have been talking about. bis central bankers ’ speeches higher land prices and spending the first of these is the link between higher housing prices and household spending. there is a well - established research literature empirically demonstrating that higher housing wealth boosts household consumption. for example, work done by my colleagues at the reserve bank of australia ( rba ) has estimated that a rise in wealth of $ 100 leads to a rise in non - housing spending of between $ 2 and $ 4 per year. 11 there are two commonly accepted channels that explain this relationship. the first is a pure wealth channel. to the extent that higher dwelling prices are perceived to increase wealth, households should spend a little of that extra wealth each year over their lifetime. the second is the collateral channel, as higher land prices increase the value of collateral that can be posted by potential borrowers. the increased collateral makes it easier for creditconstrained households to borrow to increase their spending. similarly, businesses can find it easier to finance projects that previously might have struggled to get finance. 12 over recent years, there has, however, been some reinterpretation of the role of the pure wealth channel. in part, this reflects the issues that i was speaking about a few moments ago ; that is, that higher housing prices not only deliver capital gains to the existing owners but also imply a higher price of future housing services

about - asic / news - centre / find - a - media - release / 2019 - releases / 19208mr - asic - updates - guidance - on - climate - change - related - disclosure / > i have talked about this issue previously : debelle g ( 2019 ), ‘ progress on benchmark reform ’, keynote at isda's 34th annual general meeting, hong kong, 11 april ; debelle g ( 2018 ), ‘ interest rate benchmark reform ’ speech at isda forum, hong kong, 15 may ; debelle g ( 2017 ), ‘ interest rate benchmarks ’, speech at finsia signature event : the regulators, sydney, 8 september ; debelle g ( 2016 ), ‘ interest rate benchmarks ’, speech at kanganews debt capital markets summit 2016, sydney 22 february ; debelle g ( 2015 ), ‘ benchmarks ’, speech at bloomberg summit, sydney, 18 november. see rba, apra, asic ( 2019 ), ‘ regulators urge financial institutions to plan for libor transition, joint media release, 9 may. available at < https : / / www. rba. gov. au / media - releases / 2019 / mr - 19 - 12. html >. see isda ( 2018 ), ‘ isda publishes final results of benchmark fallbacks consultation ’, press release, 20 december. available at < https : / / www. isda. org / 2018 / 12 / 20 / isda - publishes - final - results - of - benchmark - fallback - consultation / > and isda ( 2019 ), ‘ isda publishes preliminary results of supplemental benchmark fallbacks consultation ’, press release, 30 july. available at < https : / / www. isda. org / 2019 / 07 / 30 / isda - publishes - preliminary - results - ofsupplemental - benchmark - fallbacks - consultation / >. bulletin, © reserve bank of australia, 2001 – 2019. all rights reserved. the reserve bank of australia acknowledges the aboriginal and torres strait islander peoples of australia as the traditional custodians of this land, and recognises their continuing connection to country. we pay our respects to their elders, past, present and emerging. https : / / www. rba. gov. au / speeches / 2019 / sp - dg - 2019 - 08 - 15. html 10 / 10