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          • Term
            • liquidity trap
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          • Definition(s)
            • Liquidity trap is a situation when expansionary monetary policy (increase in money supply) does not increase the interest rate, income and hence does not stimulate economic growth. Economic Times
          • Example sentence(s)
            • The primary indicator of a liquidity trap is persistently low-interest rate levels mandated by the central bank of a country for a prolonged period. Though the primary aim of such government policies is to ensure robust economic activity, a liquidity trap can soon develop if not monitored closely. - Groww by
            • As traditional monetary policy is ineffective when there is a liquidity trap in the economy, governments look towards more unconventional methods to bring the economy out of the trap. One of the more effective remedies is quantitative easing. It is where central banks buy financial assets from commercial banks and other institutions, which raises prices for those assets, lowers yields, and increases liquidity in the economy. - Corporate Finance Institute by
            • In a liquidity trap, lenders find it hard to attract qualified borrowers. With interest rates nearing zero, there is little elbow room for additional incentives to attract highly-qualified candidates. - Market Business News by
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    • Portuguese
      • Economics
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          • Term
            • Armadilha de liquidez
          • Additional fields of expertise
          • Definition(s)
            • Na armadilha da liquidez, a política monetária convencional é ineficaz para estimular a atividade econômica. O modelo keynesiano ortodoxo apresenta uma situação deste tipo como um caso extremo, que foi usado para justificar a importância da política fiscal. O objetivo deste trabalho é apresentar uma análise quantitativa (usando técnicas bibliométricas) e qualitativa para explorar a literatura recente sobre a armadilha da liquidez. A evolução do número de publicações no período 1973-2015 revela os eventos econômicos (depressão japonesa dos noventa e crise financeira global de 2007-2008) que renovaram o interesse acadêmico em estudar este tema. Acreditamos que estes resultados fornecem uma visão esquemática muito precisa da agenda de pesquisa atual. SCIELO - by Maria da Glória Teixeira
          • Example sentence(s)
            • O Banco Central deverá partir para a compra de títulos no mercado de forma a contornar a “armadilha de liquidez” depois que a Selic atingir o piso na crise do coronavírus, diz Sérgio Werlang, professor da FGV e ex-diretor do Banco Central. - bloomberg by Maria da Glória Teixeira
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