Liquidity Trap
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Liquidity Trap
A liquidity trap occurs when a period of very low interest rates and a high amount of cash balances held by households and businesses fails to stimulate aggregate demand.
2018年7月4日
Liquidity Trap and Monetary Policy
 Financial Term of the Week: Liquidity Trap A liquidity trap occurs when interest rates are so low that monetary policy becomes ineffective—people prefer holding onto cash instead of investing or spending it. Even if central banks inject more money into the economy, demand doesn’t rise. It’s like pouring water into a sponge that’s already soaked! | Bennett & Porter: Insurance & Wealth Management | Facebook
0:05
 Financial Term of the Week: Liquidity Trap A liquidity trap occurs when interest rates are so low that monetary policy becomes ineffective—people prefer holding onto cash instead of investing or spending it. Even if central banks inject more money into the economy, demand doesn’t rise. It’s like pouring water into a sponge that’s already soaked! | Bennett & Porter: Insurance & Wealth Management | Facebook
FacebookBennett & Porter: Insurance &
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