What does liquidity trap mean?
Definitions for liquidity trap
liq·uid·i·ty trap
This dictionary definitions page includes all the possible meanings, example usage and translations of the word liquidity trap.
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Wikipedia
Liquidity trap
A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers holding cash rather than holding a debt which yields so low a rate of interest."A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war. According to mainstream theory, among the characteristics of a liquidity trap are interest rates that are close to zero and changes in the money supply that fail to translate into changes in the price level.
Numerology
Chaldean Numerology
The numerical value of liquidity trap in Chaldean Numerology is: 1
Pythagorean Numerology
The numerical value of liquidity trap in Pythagorean Numerology is: 1
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"liquidity trap." Definitions.net. STANDS4 LLC, 2024. Web. 28 Apr. 2024. <https://www.definitions.net/definition/liquidity+trap>.
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