Keyword: liquidity trap

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

Is Japan Saving Too Much? (6/29/1999)

Japan's economy is stuck in a prolonged stagnation because consumers' disposable income is too low and business saving is too high.

Keywords: aggregate demand, bank loan, budget deficit, business saving, cartelization, cartels, disposable income, GDP, investment, Japan, liquidity trap, public debt, saving, Stagnation, trade surplus

Liquidity Trap (6/17/2010)

Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.

Keywords: inflation rate, interest rate spread, interest rates, lending, Liquidity trap, loans, negative interest rates, nominal interest rates, real interest rates, yield curve