Journal Article
Has durable goods spending become less sensitive to interest rates?
Van Zandweghe, Willem; Braxton, John Carter (2013-10)
Despite record-low interest rates, the pace of the current economic recovery has been only moderate. One reason is that the positive impact of lowered interest rates on consumer purchases of durable goods has diminished. Comparing the current economic recovery with those that followed the recessions of 1981-82, 1990-91 and 2001, Van Zandweghe and Braxton explore the way movements in key interest rates have affected consumer spending on durable goods. They find that if the boost from lowered interest rates to durable goods spending in the current recovery had stayed as strong as it was on ...
Economic Review , Issue Q IV , Pages 5-27