Liquidity trap?
A liquidity trap occurs when interest rates get so low that actions by the Fed to lower interest rates and stimulate the economy have no effect.
Paul Krugman thinks we're close. As he points out:
Paul Krugman thinks we're close. As he points out:
As of 10:38 this morning, the one-month Treasury rate was 0.57; the three-month rate was 0.825.
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