The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

Exercise 22

In 2009, in the wake of the global financial crisis and when interest rates were at their lowest, the U.S. government instituted a "cash for clunkers" program and later a "cash for appliances" program. Both rebate programs were designed in part to stimulate new spending on automobiles and major appliances. What does the implementation of these programs imply about the government's views of the health of the interest rate channel during that time?