Cryptocurrency Q&A
Is Japan in a liquidity trap?
Is Japan in a liquidity trap?
Alessandra
Mon Dec 02 2024
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5 answers
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Japan's economy has been struggling for years, with low growth and deflation. Some economists argue that Japan may be in a liquidity trap, where monetary policy becomes ineffective due to a lack of demand in the economy. I'm wondering if Japan is really in such a trap.
5 answers
Emanuele
Tue Dec 03 2024
This situation is detrimental to economic growth as it hinders monetary policy's ability to stimulate the economy.
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HanRiverVisionary
Tue Dec 03 2024
Based on this definition, it is evident that Japan's money market has been operating near a liquidity trap for several years.
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Andrea
Tue Dec 03 2024
A liquidity trap can be described as a specific economic scenario.
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Carolina
Tue Dec 03 2024
In such a scenario, the nominal interest rates have reached their lowest possible point.
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Pietro
Tue Dec 03 2024
Further reduction in these rates becomes impossible or ineffective.
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