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 …

central banks are rarely discussed. And when they are, the haircuts applied to assets pledged to access central bank liquidity …

Depression ; expectations ; deflation ; zero bound ; liquidity trap …