Liquidity Trap

A few decades ago when I was working my way through an Economics degree, the concept of a Liquidity Trap was explained as some kind of horror that could never happen here.

Oh well.

It’s very interesting (in the Chinese sense) to be experiencing one first hand.

Hey! Wasn’t the whole point of the Federal Reserve supposed to be keeping stuff like this from happening?

And since the Fed has clearly failed at it’s primary mission not once, but twice (or more) in less than a century we’ll be getting rid of it, right?


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2 Responses to Liquidity Trap

  1. Whadya expect? Keynesian solutions have been failing for years!

  2. Bubblehead Les says:

    Maybe we should send those Marxist Keynesians into the Liquidity Trap of the La Brea Tar Pits along with the rest of the Fossils that failed Evolution 101.

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