3 ms·

And you can read a fairly technical description (written in 1999) of the current situation here: Thinking about the liquidity trap: http://web.mit.edu/krugman/

by MaysonL 14y ago

And you can read a fairly technical description (written in 1999) of the current situation here: Thinking about the liquidity trap: http://web.mit.edu/krugman/www/trioshrt.html http://web.mit.edu/krugman/www/trioshrt.html

cs702 14y ago
Yup. The source material on liquidity traps (written in 1936): http://ebooks.adelaide.edu.au/k/keynes/john_maynard/k44g/ http://ebooks.adelaide.edu.au/k/keynes/john_maynard/k44g/ An alternative explanation on why they happen (written in 1933) here: http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf And yet another alternative explanation here: http://www.levyinstitute.org/pubs/wp74.pdf http://www.levyinstitute.org/pubs/wp74.pdf All three explanations written by people who lived through the Great Depression of the 1930's. All three worth reading IMO.