single, source country) sufficiently large to push one or both countries into a liquidity trap. The zero lower bound on … study conditions under which a liquidity trap in one country might spillover to a trading partner. We study, under which … conditions, a liquidity trap in one country will lead to a liquidity trap in another country. We also show conditions under which …

interest rates' to fall below zero in all countries, giving rise to a global 'liquidity trap'. This paper explores the policy … demand towards the source (home) country. The key feature of demand shocks in a liquidity trap is that relative prices … liquidity trap, there is a critical mutual interaction between monetary and fiscal policy …