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Effect of monetary and fiscal policies on the construction

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Research monetary and fiscal policies that have affected the housing industry.
Find two sources to help you answer the following questions about the housing industry:

o How have these policies affected the employment rates for the housing industry? How have these policies affected the growth of the industry? How have these policies affected the prices of the product the industry produces?

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Solution Summary

How monetary and fiscal policy affects construction employment and the growth of the housing industry.

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The primary influence on construction employment is the interest rate, which is governed by monetary policy. When interest rates are high it is more difficult for people to get loans. Since most real estate is purchased with mortgages, the real estate market contracts during times of high interest rates. There are lots of articles about this effect. In Builder Magazine, an article by Alison Rice entitled Vital Signs: Job Squad describes how construction employment has remained high in spite of a weaker economy. You can read it here: http://www.builderonline.com/industry-news.asp?sectionID=718&articleID=4325

In the September 1, 2003 edition of Roofing Siding ...

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