Pinto, João Braz; Andrade, João de Sousa - In: Contemporary economics 13 (2019) 4, pp. 446-470
Keynes emphasized a specific situation in which the liquidity preference becomes absolute, leading to monetary policy ineffectiveness when nominal interest approaches the zero-bound rate. This situation was termed a liquidity trap (LT) by Robertson and was popularized by the Hicks- Hansen...
