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Tag Archives: liquidity trap

Liquidity trap absurdity revisited

23-Apr-09

I think Geithner and Bernanke would Vote for this solution. 
written by Lucas Engelhart
I was thinking about the Keynesian liquidity trap today, and I came to an interesting conclusion.
If Keynesian theory were true, and Krugman were right that we are in the liquidity trap, then the Fed has a rather obvious solution in its hands: print [...]