This carries the danger of the 'liquidity trap', where real interest rates cannot be cut sufficiently to stimulate growth because prices are falling even faster.
Financial and business terms. 2012.
Liquidity trap — A liquidity trap is a situation described in Keynesian economics in which injections of cash into an economy by a central bank fail to lower interest rates and hence to stimulate economic growth. A liquidity trap is caused when people hoard cash… … Wikipedia
Liquidity Trap — A situation in which prevailing interest rates are low and savings rates are high, making monetary policy ineffective. In a liquidity trap, consumers choose to avoid bonds and keep their funds in savings because of the prevailing belief that… … Investment dictionary
liquidity trap — condition in which monetary expansion does not affect the exchange rate (Economics) … English contemporary dictionary
liquidity trap — A situation in which investors hold on to cash because they are worried about the likelihood of a fall in the price of financial assets. J. M. Keynes argued that in these circumstances monetary policy becomes ineffective, because monetary… … Big dictionary of business and management
liquidity — A market which allows quick and efficient entry or exit at a price close to the last traded price. The ability to liquidate or establish a position quickly is due to a large number of traders willing to buy and sell. The CENTER ONLINE Futures… … Financial and business terms
Liquidity — A market is liquid when it has a high level of trading activity, allowing buying and selling with minimum price disturbance. Also a market characterized by the ability to buy and sell with relative ease. The New York Times Financial Glossary * *… … Financial and business terms
Trap — A trap is a device or tactic intended to harm, capture, detect, or inconvenience a human or animal intruder, or animal pest or game. Traps may be physical objects, such as cages or snares, or metaphorical concepts. Physical trapsExamples of… … Wikipedia
trap — {{Roman}}I.{{/Roman}} noun 1 hidden equipment used for catching sb/sth ADJECTIVE ▪ animal, bear, mouse (usually mousetrap), etc. ▪ radar (BrE), speed ▪ … Collocations dictionary
liquidity — noun Liquidity is used before these nouns: ↑crisis, ↑trap … Collocations dictionary
Ловушка ликвидности — LIQUIDITY TRAP Ситуация, при которой процентная ставка настолько низкая, что люди не хотят инвестировать свои средства, а предпочитают хранить их в ликвидной форме (см. Liquidity preference). В условиях низких процентных ставок эластичность… … Словарь-справочник по экономике
