[catears]

> The only solution is for the regulator, in this case the central banks, to issue guidance for the banks to create credit for only new productive investments, whether that be new housing, factories, machinery, or firms, because those are not inflationary and increase the size of the GDP pie.

I struggle to see exactly what you are advocating for. If a family wants to buy a house, they will generally have to take out a loan to cover the upfront cost and pay off the loan over a long period of time. However, the loan is not a "productive investment" (no new assets are being created, only traded) and as such the central bank should regulate normal banks to not be allowed to issue loans for existing houses.

Without the ability to take out a loan for a house, I think we can all see how no normal family without 20-40 years of combined salary payments would be able to afford a house. Is this in line with what you are suggesting, or is it something else?

I'm not trying to be asinine, this is just my interpretation of your suggestion and I am trying to understand what you are suggesting.