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Home>Bernanke Leaps into a Liquidity Trap

Bernanke Leaps into a Liquidity Trap

Perspectives Content Submission

Mon, 25 Oct 2010

“There is the possibility… that after the rate of interest has fallen to a certain level, liquidity preference is virtually absolute in the sense that almost everyone prefers cash to holding a debt at so low a rate of interest. In this event, the monetary authority would have lost effective control
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