. With irredeemable fiat base money, weak restrictions on the monetary policy rule suffice to rule out liquidity trap … flexible prices, liquidity trap equilibria cannot occur as long as the private sector does not expect the monetary authority to … authorities not to reduce the nominal stock of base money below a certain finite level in the long run. Liquidity trap equilibria …

financial stability of monetary policy in a liquidity trap. This paper investigates how monetary policy in a liquidity trap … same stabilization policy expands credit when the economy is in a liquidity trap. These findings show that the … effectiveness of financial stabilization policy can vary depending on whether or not the economy is in a liquidity trap …

-driven liquidity trap, the domestic and international transmission of persistent shocks to productivity and government purchases … differs markedly from shock transmission in a “fundamentals-driven” liquidity trap …

bound on nominal interest rates. In particular, a foolproof way of escaping from a liquidity trap is presented, consisting …

developments. The two ghosts are the venerable liquidity trap and the Pigou effect or real balance effect. The eccentricities are …

about the future conduct of policy; in this sense, a liquidity trap' is possible. Nonetheless, a credible commitment to the …

its currency and an exchange-rate peg. This way, the central bank can implement the optimal escape from a liquidity trap … to escape from a liquidity trap …

When the economy is in a liquidity trap and households have a precautionary motive to save against unemployment risk … during a liquidity trap. However, reducing market incompleteness mitigates the fall in demand under realistic monetary policy …