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June 1968

Does Slower Monetary Expansion Discriminate Against Housing?

by Norman N. Bowsher and Lionel Kalish

The “Declaration of National Housing Policy” in the Housing Act of 1949 establishes as one of the national objectives “the realization as soon as feasible of the goal of a decent home and suitable living environment for every American family”; and it requires programs “to encourage and assist ... the stabilization of the housing industry at a high volume of residential construction”. In view of the importance of housing, there is a natural hesitancy on the part of any policy maker to take actions which he considers to be detrimental to the housing industry.