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The additional money will be lost in the 'liquidity trap'.
He concluded that a liquidity trap was possible after all.
So either we're headed for a liquidity trap or we aren't.
More monetary policy will not have any effect as we are already in a liquidity trap.
Most analysts don't think we'll find ourselves caught in a liquidity trap.
Monetary policy is not working because we are stuck in a liquidity trap.
Because in a liquidity trap, there is no such thing as "crowding out."
We are one shock away from a liquidity trap.
In a liquidity trap, bonds pay little to no interest, which makes them nearly equivalent to cash.
The particular type of quagmire to worry about has a name: liquidity trap.
Another issue arising from monetary policies is the liquidity trap.
For him, liquidity traps can be avoided, however possible they might be in theory.
Economists call this state of affairs a liquidity trap.
It has been suggested that the Japanese economy in the 1990s suffered from a "liquidity trap" scenario.
Such a situation, called a liquidity trap, can occur, for example, during deflation or when inflation is very low.
In this hypothetical situation, the co-op has fallen into a liquidity trap.
However, some economists (particularly those from the Chicago school) reject the existence of a liquidity trap.
Conventional monetary policy can be ineffective in situations such as a liquidity trap.
The debate he started at that time over liquidity traps and what policies best address them continues in the economics literature.
Japan remains caught in a liquidity trap, which means that even though money is effectively free, people are not using it to invest or spend.
Japan, say the economists, has fallen into the dread "liquidity trap."
"The textbook solution to a liquidity trap is a fiscal expansion, and there's every reason to think that would work."
They really are clueless, stuck in a liquidity trap supply side economics is having no effect at all.
People go on about a confidence effect, we're in a liquidity trap when interest rates are so low there is very little movement that can happen.
In such a case, normal monetary policy cannot further lower interest rates, and the economy is in a liquidity trap.