The primary effect of this policy on domestic demand may be through the “demand switching” effects of a lower exchange rate rather than through a demand creating channel. Of course, if all countries engage in demand switching policies, we could have a race to the bottom, with no one any better off.
8 CRA-related mortgage loans had delinquency rates lower than the average across all 2006-vintage mortgages and sharply lower than those of subprime loans; see Neil Bhutta, and Glenn B. Canner, “Mortgage Market Conditions and Borrower Outcomes: Evidence from the 2012 HMDA Data and Matched HMDA-Credit Record Data,” Federal Reserve Bulletin 99 (November 2013).