Phrases with «liquidity trap»

A liquidity trap occurs when interest rates are very low and people still don't want to borrow money or invest, because they expect the economy to get worse. It is like a financial standstill, where people hoard money instead of putting it into the economy, which can make it harder for the economy to grow. Full definition

Sentences with «liquidity trap»

  • Eliminate Keynesian idiocy, and manage the economy sensibly, balancing the budget as a normal matter, and don't use government or central bank policy to moderate it, because that only creates liquidity traps like the one we are in. (alephblog.com)
  • · 4) The FOMC assumes that stagflation will not happen again, or that their quantitative easing does not put us in a Japan - style liquidity trap. (alephblog.com)
  • (Aside from that, do we really want to dig ourselves into a deeper liquidity trap?) (alephblog.com)
  • (see all sentences)
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