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http://en.wikipedia.org/wiki/Liquidity_Trap
A liquidity trap is a situation, described in Keynesian economics, in which injections of cash into the private banking system by a central bank fail to decrease interest rates and hence make monetary policy ineffective. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate...
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http://en.wikipedia.org/wiki/Liquidity_trap
A situation in which expansionary monetary policy fails to stimulate the economy. As used by Keynes (1936), this meant interest rates so low that expectations of their increase made people unwilling to hold bonds. Today it usually means a nominal interest rate so near zero that lowering it further is impossible or ineffective.
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http://www-personal.umich.edu/~alandear/glossary/l.html
A Keynesian idea. When expected returns from investments in securities or real plant and equipment are low, investment falls, a recession begins, and cash holdings in banks rise. People and businesses then continue to hold cash because they expect spending and investment to be low. This is a self-fulfilling trap. See also Keynes effect and Pigou ef...
Found on
http://www.econterms.com/glossary.cgi?query=liquidity+trap
When the rate of interest is so low (and the price of bonds is so high) that everyone anticipates a future fall in the price of bonds
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http://www.encyclo.co.uk/local/20140
In economics, a liquidity trap is a situation when the economy is stagnant and the interest rate is... <a target=_blank href='http://www.finance-glossary.com/terms/liquidity-trap.htm?id=12721&ginPtrCode=00000&PopupMode=false' title='Read full definition of liquidity trap'>more</a>
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http://www.finance-glossary.com/pages/home.htm
A liquidity trap is a situation that could arise in an economy in which interest rates have fallen so low that investors allow their preference for liquidity to prevent them from investing in bonds. The liquidity trap was described by John Keynes in his general theory to point out that traditional views (now associated with monetarism) were inconsi...
Found on
http://www.probertencyclopaedia.com/browse/JL.HTM
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