More monetary policy will not have any effect as we are already in a liquidity trap.
He concluded that a liquidity trap was possible after all.
The particular type of quagmire to worry about has a name: liquidity trap.
Most analysts don't think we'll find ourselves caught in a liquidity trap.
To find another case of a liquidity trap, you have to go back to the United States in the 1930's.
So either we're headed for a liquidity trap or we aren't.
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."
The additional money will be lost in the 'liquidity trap'.
In a liquidity trap, bonds pay little to no interest, which makes them nearly equivalent to cash.