The concept of "liquidity trap" has recently seen a revival in macroeconomics. Its definition, however, is not univocal. It may be useful, therefore, to turn back to the original meaning of this expression in the works of the economists that first introduced it into economic analysis, John M....

This paper contrasts the orthodox approach with an alternative view on finance, saving, deficits, and liquidity. The conventional view on the cause of the current global financial crisis points first to excessive United States trade deficits that are supposed to have “soaked up” global...

This paper contrasts the orthodox approach with an alternative view on finance, saving, deficits, and liquidity. The conventional view on the cause of the current global financial crisis points first to excessive U.S. trade deficits that are supposed to have “soaked up” global savings....