|Mause I 224
Def Liquidity Trap/Monetarism: If interest rates are already comparatively low, so that no actor expects further interest rate cuts, the additional liquidity of monetary policy measures is no longer used to buy bonds. In this case, there will not be the desired interest rate cuts, which should lead to additional demand for goods in the economy as a whole. In this case one speaks of a
liquidity trap that leads to the ineffectiveness of monetary policy. These considerations are in contradiction to neoclassical theory. MonetarismVsNeoclassicism._____________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. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018