Marco Di Maggio, Amir Kermani, Rodney Ramcharan, 05 October 2014

After the Crisis, unconventional monetary policy measures were adopted. A major question is whether they have succeeded in boosting aggregate demand. This column exploits adjustable rate mortgages that originated before the Crisis and featured an automatic reset of the interest rate. Low interest rates have stimulated consumption of durable goods, but the expansionary effect is partially dampened by households’ desire to deleverage voluntarily. 


CEPR Policy Research