Did Low Interest Rates Boost Household Spending?

Real estate Asst. Prof. Amir Kermani writes about his new study that suggests that lower interest rates and reduced mortgage payments prompt consumer spending (especially in low-income households) but they also encourage consumers to voluntarily deleverage or attempt to pay off existing debt which dampens the effectiveness of monetary policy.

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Real estate Asst. Prof. Amir Kermani writes about his new study that suggests that lower interest rates and reduced mortgage payments prompt consumer spending (especially in low-income households) but they also encourage consumers to voluntarily deleverage or attempt to pay off existing debt which dampens the effectiveness of monetary policy.

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