Posts Tagged ‘Liquidity Trap’
Liquidity Traps: Old and New
By Hassan Shirvani—- The concept of a liquidity trap, introduced by the British economist John Maynard Keynes during the Great Depression of the 1930s, refers to the situation in which monetary policy becomes largely impotent in lowering interest rates to stimulate additional borrowing and spending in the economy. This can result from the fact that…
Read More