What does Liquidity Trap mean?
A situation where monetary policy is ineffective because interest rates are very low and savings are high.
In a liquidity trap, monetary policy becomes ineffective as people hoard cash.
Liquidity Trap in German, French, Spanish and Italian
GermanLiquiditätsfalle
Zustand, in dem Zinssenkungen keine Wirkung mehr auf die Wirtschaft haben.
FrenchTrappe à liquidité
Situation où les agents préfèrent conserver leur épargne plutôt que d'investir malgré des taux bas.
SpanishTrampa de la liquidez
Fase en la que la política monetaria no logra estimular la economía.
ItalianTrappola della liquidità
Scenario in cui l'aumento della base monetaria non riduce i tassi di interesse.
Common phrases with Liquidity Trap
- monetary policy ineffective liquidity trap
- low interest rates liquidity trap
- hoard cash liquidity trap