commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

In this paper, we investigate how the dynamic effects of excess liquidity shocks on economic activity, asset prices and … inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity …

-Wicksellian model and then adds banks and a role for bonds in the liquidity management of households and banks. The Banks and Bonds …

This paper analyses the relationship between the prevailing liquidity conditions (such as measures of money, credit and … sustained excess liquidity, we analyse under which conditions they are more likely to be followed by an asset price boom. The … periods of sustained excess liquidity that are accompanied by strong economic activity, low interest rates, high real credit …

debt in a liquidity trap by increasing taxes and by taming public spending. This prescription is at odds with large deficit …-spending undertaken in the US during previous liquidity trap episodes. In this article, I show that accumulating debt turns optimal with …. Moreover, even when labor taxes fluctuate and policy is fully coordinated, optimal deficit-spending in a liquidity trap emerges …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …