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Título:
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Some Reflections on the Theory of the “Liquidity Trap”
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Autores:
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Palacio Vera, Alfonso
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Tipo de documento:
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texto impreso
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Editorial:
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Facultad de Ciencias Económicas y Empresariales. Decanato, 2009-02
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Dimensiones:
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application/pdf
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Nota general:
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cc_by_nc_sa
info:eu-repo/semantics/openAccess
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Idiomas:
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Palabras clave:
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Estado = Publicado
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Materia = Ciencias Sociales: Economía: Microeconomía
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Tipo = Documento de trabajo o Informe técnico
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Resumen:
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We provide a formal definition of the “liquidity trap” (LT) according to which, a LT arises if a combination of high precautionary saving, low investment and stringent conditions for access to bank credit stemming from a high degree of liquidity preference make the sum of the “neutral” interest rate and the expected inflation rate fall short of the term/risk premium on long-term interest rates. We then compare the “New Consensus” (NC) in macroeconomics as expounded in Woodford (2003) and the Post-Keynesian (PK) approach regarding the causes of a LT. We argue that in the NC approach a LT is a phenomenon caused by unusually large transitory shocks that depress the “neutral” interest rate temporarily. By contrast, we argue that in the PK approach an economy may also exhibit a “structural” or long-lasting LT even in the absence of large adverse shocks. Finally, we discuss a number of theoretical issues recently raised in the rapidly growing literature on the LT.
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En línea:
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https://eprints.ucm.es/id/eprint/8586/1/0902.pdf
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