Economics Dictionary of ArgumentsHome
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| Liquidity Trap - Economics Dictionary of Arguments | |||
| Liquidity trap: A liquidity trap occurs when interest rates are very low, and saving money becomes more favorable than spending or investing due to economic uncertainty. Despite low interest rates, people hold onto cash rather than spending, stalling economic growth as central banks find it challenging to stimulate spending or investment further. See also Interest rates, Central Bank, Economic growth._____________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 | Item | More concepts for author | |
|---|---|---|---|
| Monetarism | Liquidity Trap | Monetarism | |
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Ed. Martin Schulz, access date 2024-04-20 | |||
