Toni has taught personal finance and has an MBA. Loaning money to the government through investments can be profitable, but when it is not, it can pose a problem to the government's money supply. This lesson discusses the liquidity trap. ...
Estimation of the liquidity trap using a panel threshold model: Applied Economics Letters: Vol 23, No 16doi:10.1080/13504851.2015.1137544LiquiditytrappanelthresholdmodeldemandformoneyFangpingBusinessPengBusinessR.BusinessJ.BusinessCebulaBusinessM.Business...
This chapter was originally published inThe New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume Google Scholar Keynes, J.M. 1930b. A treatise on money, vol. 2: The applied theory of money. InCollected writings of J.M. Keynes, ed. ...
Liquidity trap Definition In economics, a liquidity trap is a situation when the economy is stagnant and the interest rate is equal to, or slightly above, 0 percent. In this kind of situation, people do not expect high returns on their financial or real investments and so they keep their ...
The notion of ‘liquidity preference’ has become generally used in the literature on monetary issues (particularly that concerned with the interest rate) following Keynes’s contributions in the 1930s. It concerns the motives for demanding monetary...
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