Philosophy Dictionary of ArgumentsHome
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| 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. | |||
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Monetarism on Liquidity Trap - Dictionary of Arguments
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. >Monetary policy, >Monetarism, >Neoclassical economics._____________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. |
Monetarism Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 |
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> Counter arguments against Monetarism
> Counter arguments in relation to Liquidity Trap
Ed. Martin Schulz, access date 2024-04-28