Buiter, Willem H.; Panigirtzoglou, Nikolaos - 2021
The paper considers ways of avoiding a liquidity trap and ways of getting out of one. Unless lower short nominal … binding constraint. The empirical evidence on this issue is mixed. Once in a liquidity trap, there are two means of escape … advocated by Gesell. This would also reduce the likelihood of ending up in a liquidity trap. Taxing currency amounts to having …