Economics Dictionary of Arguments

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Investment trap: An investment trap occurs when an investment appears to be undervalued but is actually overpriced or has fundamental flaws that limit its potential for growth. It can lure investors with promises of high returns, but ultimately leads to losses or stagnation. See also Risks, Investments, Planning, Economic growth, Economic cycle.
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Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.

 
Author Concept Summary/Quotes Sources

Keynesianism on Investment Trap - Dictionary of Arguments

Mause I 225
Def Investment Trap/Keynesianism: in the so-called investment trap, interest rate changes have no influence on investment demand. The possibility of a so-called fine-tuning of the economy by monetary policy is therefore viewed with skepticism. Post-Keynesian models (1) are sceptical about the interest rate response of investment demand.
In extreme cases, monetary policy is not only weakly effective and with delays, but is completely ineffective. According to the New Keynesian theory, due to the inverse causal chain, no monetary transmission channel opens up at all.
>Interest rates
, >Monetary policy, >Keynesianism, >J.M. Keynes.

1. Michal Kalecki, In Collected works of Michal Kalecki, Hrsg. Jerzy Osyatinski. Oxford 1973.

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Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments
The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Keynesianism
Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018


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