Keyword: Yen
A Nation of Money Hoarders (11/9/2001)
When the general price level keeps falling in a depressed economy with high unemployment, firms and consumers might not invest or consume more no matter how low the interest rate is. Instead, they would rather hold on to the money they already have or convert other assets into money.
Keywords: depreciation, downward spiral, interest rate, liquidity trap, savings, Yen