Schmitt-Grohé, Stephanie; Uribe, Martín - 2000
is that such rules in combination with the zero bound on nominal interest rates can lead to unintended liquidity traps …. An immediate question posed by this result is whether the government could avoid liquidity traps by ignoring the zero … negative value, self-fulfilling liquidity traps can still emerge. That is, deflationary equilibria originating arbitrarily near …