The role of the Federal Reserve\u27s monetary policy in the propagation of cycles in residential construction has long been a subject of interest to economists. This paper considers the hypothesis that it is only the uniahticipated component of money supply growth that affects built-for-sale, single-family housing starts in the United States\u27. Using quarterly data for the 1964-1977 period, tests similar to those performed by Barro [1977] and others on broader macroeconomic variables are shown to support this hypothesis
