An evaluation of regulation X.

Abstract

The aim of the thesis has been to provide what is probably the first extensive written discussion of the operation of housing credit controls, and specifically regulation X. In a sense, the thesis is completely original in that any written matter a bout it is quite sparse, and, again, there may be little really original works in it as almost all the data came from various Government agencies.

In order to better understand the need for the Regulation and the role, in general, of selective credit controls, a background was set up in the early part of the thesis. This subject in itself could be the basis of an extensive work, but of necessity, had to be made brief; however, it is hoped that it can be seen from this discussion the need for credit control in an economy. Chapter Six, probably, the only really original work in the thesis, is an attempt to illustrate the role building construction has in influencing inflation. Even though the values derived seem rather large, the concept as put forth in the chapter itself is probably quite realistic. Because of the importance of the building industry in the economy, the building cycle is no myth, and when one considers the effect that building did have in the years studied here, the importance of selective credit restriction on housing is further emphasized. The Regulation could not, as originally intended, be studied in itself, as even though it was the basis of building credit restrictions, it was only one aspect in restrictions on housing and a small part of the large net of credit curtailment throughout the economy. Because of its integration in the credit sector, it was necessary to bring a short discussion of other aspects of the general credit restriction program. Even this chapter did not bring in all the measures involved, but it may help to show the extent to which credit was curtailed in the economy. [TRUNCATED]